CITY OF MAPLEWOOD, MISSOURI COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2018
Submitted By:
Martin J. Corcoran City Manager
Table of Contents
Page Part I - Introductory Section (Unaudited):
Letter of Transmittal ...... i - iii Maplewood City Officials ...... iv Organizational Chart ...... v GFOA Certificate of Achievement ...... vi
Part II - Financial Section:
Independent Auditor’s Report ...... 1 - 3
Management’s Discussion and Analysis (Unaudited) ...... 4 - 15
Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position ...... 16 Statement of Activities ...... 17
Fund Financial Statements: Balance Sheet - Governmental Funds ...... 18 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ...... 19 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds ...... 20 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ...... 21 Statement of Fiduciary Net Position - Fiduciary Fund Type - Pension Trust Fund ...... 22 Statement of Changes in Fiduciary Net Position - Fiduciary Fund Type - Pension Trust Fund ...... 23
Notes to Basic Financial Statements ...... 24 - 57
Required Supplementary Information (Unaudited):
Schedule of Revenues, Expenditures and Change in Fund Balance - Budget and Actual - General Fund ...... 58 Schedule of Revenues, Expenditures and Change in Fund Balance - Budget and Actual – Park and Storm Fund ...... 59 Schedule of Revenues, Expenditures and Change in Fund Balance - Budget and Actual -1/4 Cent Fire Sales Tax Fund ...... 60 Schedule of Revenues, Expenditures and Change in Fund Balance – Budget and Actual – Solid Waste Disposal Fund ...... 61 Notes to Budgetary Comparison Information ...... 62
Table of Contents
Page Part II - Financial Section (Continued):
Required Supplementary Information (Unaudited) (continued):
Pension Trust Fund: Schedule of Changes in Net Pension Liability ...... 63 Schedule of Employer Contributions ...... 64 Schedule of Investment Returns ...... 65 Missouri Local Government Employees Retirement System (LAGERS): Schedule of Changes in Net Pension Liability ...... 66 Schedule of Employer Contributions ...... 67 Other Post-Employment Benefits Program- Schedule of Changes in Total OPEB Liability and Related Ratios ...... 68
Other Supplementary Information - Combining Fund Financial Statements:
Combining Balance Sheet - Nonmajor Governmental Funds ...... 69 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds...... 70 Combining Balance Sheet - Nonmajor Special Revenue Funds ...... 71 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Special Revenue Funds ...... 72
Other Supplementary Information - Budgetary Comparison Information (Unaudited):
Schedule of Revenues, Expenditures and Change in Fund Balance - Budget and Actual - Governmental Funds: Major Capital Projects Fund: ½ Cent Capital Improvement Fund ...... 73 Non-Major Special Revenue Funds: Sewer Lateral Fund...... 74 Forfeiture Fund ...... 75 Non-Major Debt Service Funds: Deer Creek Center Special Allocation Fund ...... 76 Cambridge Commons Fund ...... 77 Special Business District Fund ...... 78 Hanley Road Special Allocation Fund...... 79
Table of Contents
Page Part III - Statistical Section (Unaudited):
Net Position by Component ...... 80 Changes in Net Position ...... 81 Program Revenues by Function/Program ...... 82 Fund Balances - Governmental Funds ...... 83 Changes in Fund Balances - Governmental Funds ...... 84 Tax Revenue By Source, Governmental Funds ...... 85 Assessed Value and Actual Value of Taxable Property...... 86 Direct and Overlapping Property Tax Rates ...... 87 Principal Property Tax Payers ...... 88 Property Tax Levies and Collections ...... 89 Ratios of Outstanding Debt by Type ...... 90 Ratios of General Bonded Debt Outstanding and Legal Debt Margin ...... 91 Direct and Overlapping Governmental Activities Debt ...... 92 Pledged-Revenue Coverage ...... 93 Demographic and Economic Statistics ...... 94 Principal Employers ...... 95 Full-Time Equivalent City Government Employees by Function/Program ...... 96 Operating Indicators by Function/Program ...... 97 Capital Asset Statistics by Function/Program ...... 98
Introductory Section City of Maplewood
December 19, 2018
Honorable Mayor and Members of the City Council City of Maplewood, Missouri
The Comprehensive Annual Financial Report of the City of Maplewood, Missouri (“the City”) for the fiscal year ending June 30, 2018, is submitted herewith. Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with the management of the City. The City maintains an adequate system of internal control to facilitate the fair presentation of the financial statements, supporting schedules and statistical tables in this annual financial report. To the best of our knowledge and belief the enclosed data is accurate in all material respects and is reported in a manner designed to fairly present the financial position and results of operations of the governmental activities and various funds of the City. All disclosures necessary to enable the reader to gain an understanding of the City’s financial activities have been included.
This report is presented for the purpose of providing the Council, the Administration, and the citizens with a detailed and complete report of financial activity during the fiscal year ending June 30, 2018.
The City’s financial statements have been audited by Daniel Jones & Associates, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statement of the City of the year ended June 30, 2018 are free of material misstatements. The independent audit involved examining, on a test basis, evidence supporting the amount and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall basic financial statement presentation. Based upon the annual audit, the independent auditor concluded that there was reasonable basis for rendering an unmodified opinion. The City of Maplewood, Missouri’s financial statements for the fiscal year ended June 30, 2018, are fairly presented in conformity with generally accepted accounting principles (GAAP). The independent auditors’ report is presented as the first component of the financial section of this report.
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of
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transmittal is designed to complement MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the Report of Independent Auditors.
Profile of the City
The City of Maplewood is located in the south central portion of the St. Louis metropolitan area in St. Louis County, Missouri. During this year, the City continued to attract several new businesses while retaining the majority of the existing businesses. Interest in locating within Maplewood’s central business district has increased significantly. The property within the City has continued to increase in value, and its business district has been characterized favorably by numerous newspaper and magazine articles.
The City provides a full range of services. These services include police, fire protection and emergency medical services, sanitation services, the construction and maintenance of streets and infrastructure, parks and recreational activities events. In addition to general government activities, the governing body exercises, or has the ability to exercise, oversight of the Policemen’s and Firemen’s Retirement Fund (Pension Trust Fund); therefore, these activities are included in the reporting entity. However, the Maplewood Public Library, Industrial Development Authority (IDA), the Maplewood-Richmond Heights School District, Special School District of St. Louis County, St. Louis Community College, St. Louis School District and Bi-State Development Agency Transit System have not met the established criteria for inclusion in the reporting entity, and accordingly are excluded from this report.
The City of Maplewood provides its services through four major departments: Fire, Parks and Recreation, Police and Public Works. In each department, functions are divided into divisions, each of which is responsible for providing specialized services to Maplewood citizens. Overall coordination of all City activities and finances rests with the Executive Department, administered by the City Manager.
Factors Affecting Financial Condition
The City Manager is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of
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reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management.
The City of Maplewood is currently adjusting to the impact Senate Bill 5 is having on collection and assessment of court fines. This senate bill has limited the City’s ability to assess and collect court fines, which is reducing overall general fund revenues. In July 2017, the Missouri Supreme Court established a policy to implement a statewide court automation system. The City is in the process of implementing policies and procedures to ensure the transition is smooth.
The Mayor and City Council approved a budget that provided for a 3% salary increase effective August 1, 2017. In addition, the City is looking forward to the opening of several new businesses both city-wide and in our downtown business district.
Awards and Acknowledgments
Acknowledgments – The preparation of this report could not have been accomplished without the loyal and dedicated help of the entire staff of the City Manager’s Office. I would like to thank the Mayor and City Council for their combined interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner.
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CITY OF MAPLEWOOD, MISSOURI
MAPLEWOOD CITY OFFICIALS June 30, 2018
Elected Officials
Mayor Barry Greenberg
Councilmembers, Ward 1 Karen Wood Sandi Phillips
Councilmembers, Ward 2 Timothy Dunn Ray Crader
Councilmembers, Ward 3 Shawn Faulkingham Jennifer Schmidt
Administrative Staff
City Manager Martin J. Corcoran
Police Chief Steven Kruse
Fire Chief Terry Merrell
Director of Finance Karen Dilber
Director of Public Works Anthony Traxler
Director of Parks & Recreation Teresa Proebsting
Director of Community Development Rachelle L’Ecuyer
City Attorney Craig Biesterfeld
City Prosecutor Doug Sidel
Municipal Judge Brian Dunlop
Court Clerk Ruth Swallow
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Financial Section City of Maplewood
Independent Auditor’s Report
The Honorable Mayor and Members of the City Council City of Maplewood, Missouri
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, each major fund and the remaining fund information of the City of Maplewood (“City”), Missouri, as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
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Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund and the remaining fund information of the City as of June 30, 2018, and the respective changes in financial position for the year then ended in accordance with the accounting principles generally accepted in the United States of America.
Emphasis of Matters
As described in Note 10 to the financial statements in 2018, the City has adopted new accounting guidance, GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, as required by the Governmental Accounting Standards Board. Our opinions are not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management‘s discussion and analysis, budgetary comparison information and related notes, pension trust fund schedules, Missouri Local Government Employees Retirement System (LAGERS) schedules and other post-employment benefits program – schedule of Changes in Total OPEB Liability and related ratios on pages 4 through 15 and 58 through 68 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining non-major fund financial statements and budgetary comparison schedules, introductory section and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements.
The combining non-major fund financial statements and budgetary comparison schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining non-major fund financial statements and budgetary comparison schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.
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Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 19, 2018, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Daniel Jones and Associates, P.C. Arnold, Missouri
December 19, 2018
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Management’s Discussion and Analysis
CITY OF MAPLEWOOD, MISSOURI
MANAGEMENT’S DISCUSSION & ANALYSIS - UNAUDITED JUNE 30, 2018
MANAGEMENT’S DISCUSSION & ANALYSIS
The City of Maplewood, Missouri’s (the City) annual financial report presents our discussion and analysis of the City’s financial performance during the fiscal year ended June 30, 2018. This is the thirteenth year the City has prepared financial statements in accordance with the guidelines prescribed in Governmental Accounting Standards Board (GASB) Statement Number 34. Please read this report in conjunction with the transmittal letter at the front of this report and the City’s financial statements, which follow this section.
FINANCIAL HIGHLIGHTS
- On a government-wide basis the assets and deferred outflows of resources of the City of Maplewood exceeded its liabilities and deferred inflows of resources for the most recent fiscal year by $19,015,254. The City has a deficit in unrestricted net position totaling $(10,669,216) at June 30, 2018.
- The City’s total net position increased by $2,458,989 during the year.
- The investment in capital assets, net of related debt totaled $22,707,520 at June 30, 2018.
- At June 30, 2018, the unassigned fund balance for the general fund was $6,121,132.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the basic financial statements.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The government-wide financial statements are a broad overview of the City’s finances and report information about the City as a whole using accounting methods similar to those used by the private sector. The statements provide both long-term and short-term information about the City’s overall financial status. The government-wide financial statements include the statement of net position and the statement of activities.
The statement of net position presents all of the City’s assets plus deferred outflows of resources and liabilities plus deferred inflows of resources with the difference between the two reported as net position. Net position is an important measure of the City’s overall financial health. The increases and decreases in net position can be monitored to determine whether the City’s financial positions are improving or deteriorating. The following table provides a condensed statement of net position as of June 30, 2018 and 2017:
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Management’s Discussion & Analysis – Unaudited (continued)
Table 1: Net Position Governmental Activities June 30,
2018 2017 Assets Current and other assets $ 21,722,857 $ 23,536,642 Capital assets, net 29,844,490 27,485,468 Total Assets 51,567,347 51,022,110
Deferred Outflows of Resources 2,206,136 1,909,723
Liabilities Long-term liabilities 32,710,507 34,725,788 Other liabilities 1,054,623 1,611,038 Total Liabilities 33,765,130 35,886,826
Deferred Inflows of Resources 993,099 99,792
Net Position Net investment in capital assets 22,707,520 21,099,780 Restricted 6,976,950 5,666,511 Unrestricted (10,669,216) (9,821,076)
Total Net Position $ 19,015,254 $ 16,945,215
Total net position of the City as a whole increased $2,070,039. By far, a large portion of the City’s net position reflects its investment in capital assets (e.g. land, infrastructure, buildings and equipment) less any related debt used to acquire those assets still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. The negative unrestricted net position is due to TIF related debt which is not offset by any governmental activities related to capital assets, and GASB 68 and 71 reporting for the LAGERS pension fund.
The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flow. Thus, revenues and expenses are reported for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
The government-wide financial statements report functions of the City that are generally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business type activities). Governmental activities for the City include general government, public safety, public works, planning, parks and recreation, community development, judicial, and interest and fiscal charges related to the City’s debt. Please note that the City currently has no business type activities.
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Management’s Discussion & Analysis – Unaudited (continued)
Table 2 shows the changes in net position for the year ended June 30, 2018.
Table 2: Change in Net position Governmental Activities For the Fiscal Year Ended June 30,
2018 2017 Revenues: Program revenues: Charges for services $ 1,385,238 $ 1,471,268 Operating grants and contributions 585,091 548,481 Capital grants and contributions 145,240 1,419,789 General revenues: Taxes 13,475,418 12,660,224 Investment income 34,949 13,719 Miscellaneous and other 1,088,538 592,731 Total Revenues 16,714,474 16,706,212
Expenses: General government 2,120,495 2,174,305 Public safety 6,431,259 5,810,449 Public works 3,153,560 2,693,861 Sanitation 638,212 724,108 Parks and recreation 640,971 601,333 Community development 152,339 96,669 Interest and fiscal charges 1,118,649 1,203,780 Total Expenses 4,255,485 13,304,505
Change in Net Position 2,458,989 3,401,707
Net Position, July 1 16,945,215 13,543,508
Prior Period Adjustment* (388,950) -
Net Position, June 30 $ 19,015,254 $ 16,945,215
*See Note 1.
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Management’s Discussion & Analysis – Unaudited (continued)
Investment Earnings 2018 Revenues by Source 0% Operating Grants Charges for services Miscellaneous Taxes and Contributions 1% Charges for services 3% Gross Receipts Taxes 8% Operating Grants and Contributions 12% Other Capital Grants 7% 1% Capital Grants
Property Taxes Property Taxes 21% Sales Taxes
Sales Taxes Gross Receipts Taxes 47% Miscellaneous Taxes
Investment Earnings
Other
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Management’s Discussion & Analysis – Unaudited (continued)
2018 and 2017 Revenues by Function 9,000,000.00
8,000,000.00
7,000,000.00
6,000,000.00
5,000,000.00 2018 4,000,000.00 2017
3,000,000.00
2,000,000.00
1,000,000.00
‐ 12345678910
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Management’s Discussion & Analysis – Unaudited (continued)
2018 and 2017 Expenses by Function 7,000,000.00
6,000,000.00
5,000,000.00
4,000,000.00 2018
3,000,000.00 2017
2,000,000.00
1,000,000.00
‐
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Management’s Discussion & Analysis – Unaudited (continued)
2018 Expenses by Function Parks & Recreation 1% Community Sanitation Development 5% 8% Public Works 4% Expenses Expenses 15% General Government Public Safety Public Safety Public Works 22% General Government 45% Sanitation Parks & Recreation Community Development
Overall, the financial condition of the City remained the same compared to the prior year, with revenues being greater than expenses. Businesses in Maplewood continued to succeed and in most cases, increase their revenues from the previous year, through the slowly improving economy. Government-wide revenues increased $8,262 due to increased receipt of sales taxes. Government-wide expenses increased $950,980 due to the construction of the new firehouse and street maintenance projects. The City continues to carefully monitor and control expenses.
FUND FINANCIAL STATEMENTS
The fund financial statements provide more detailed information about the City’s most significant funds. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City uses fund accounting to insure compliance with finance related legal requirements. The funds are divided into two categories: governmental funds and fiduciary funds.
GOVERNMENTAL FUNDS
Most of the City’s basic services are included in the governmental funds. These funds are used to accomplish much of the same functions reported as governmental activities in the government-wide financial statements. These fund statements measure current financial resources and uses or in essence near term inflows and outflows of expendable resources as well as balances of expendable resources available at the end of the fiscal year. Such information may be useful in evaluating governments near term financial requirements.
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Management’s Discussion & Analysis – Unaudited (continued)
Because the focus of governmental funds is narrower than that of governmental-wide financial statements, it is useful to compare the information presented for governmental funds with similar information, presented for governmental activities in the government-wide financial statement. By doing so, readers may better understand the long term impact of the government’s near term financial decisions. Both the government fund balance sheet and the government fund statement of revenues, expenditures and changes in fund balance, provide a reconciliation to facilitate this comparison between government funds and governmental activities. The City’s governmental funds are as follows:
General Fund – The General Fund is the primary operating fund of the City. It is funded through property tax, gross receipts, sales tax, license and permit fees, intergovernmental revenue, charges for services, recreation fees, and court fines and forfeitures. The General Fund revenues support the day-to-day operations of the following City departments: police, fire, public works, parks, sanitation, legal, legislative and executive. Capital outlays and capital improvements are periodically funded through the General Fund.
½ Cent Capital Improvements Streets Fund – The ½ cent capital improvement fund was created in February, 1994 by voter approval to levy a ½ cent sales tax. The tax must be used for the purpose of funding City capital improvements.
Hanley Road Special Allocation Fund – Tax Increment Financing (T.I.F) is an economic development tool available to municipalities in the State of Missouri. It works by capturing sales tax and property tax to pay for public improvements associated with a development project. The increased assessed value of the property after the improvement and the sales tax and other revenue generated from the project itself goes to pay back the T.I.F. bonds through PILOTS (Payments In Lieu of Taxes) and EATS (Economic Activity Taxes).
The Hanley Road Special Allocation Fund was created to allow the redevelopment of an area bound by Hanley Road on the west, Laclede Station Road on the east, Folk Avenue on the north and south of the MetroLink right-of-way. The major anchor for this area is Lowe’s.
½ Cent Capital Improvements Parks & Storm Water Fund – The ½ Cent Parks Capital Improvement Fund was created in November, 1997 by voter approval. The uses of funds from this tax are restricted to parks and recreation operations and improvement and storm water infrastructure improvements.
Solid Waste Disposal Fund – The Solid Waste Disposal Fund was created in April, 2004 by voter approval. The tax must be used for the purpose of funding residential trash collection for single family, duplexes, triplexes, and four family residences.
Sewer Lateral Fund – The Sewer Lateral Repair Fund was created in November, 1997 by voter approval of a $28.00 annual tax to be used to repair residential sewer laterals. The funds can only be used for repairs at single through six family residences. Only repairs from the house foundation to the sewer main are eligible for the program. In May of 2014, with voter approval, the City increased the annual tax to $39.00 per year. In 2017, with voter approval, the annual tax was increased to the maximum levy of $50.00.
Forfeiture Fund – Account required by Federal regulations to accept all asset sharing funds received from drug forfeitures where Federal Law Enforcement officials were involved with Maplewood Police Department officers in the seizure of assets. Account is subject to federal audit and funds can only be used for Maplewood Police Department law enforcement purposes.
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Management’s Discussion & Analysis – Unaudited (continued)
Cambridge Commons Special Allocation Fund – Tax Increment Financing (T.I.F.) is an economic development tool available to municipalities in the State of Missouri. It works by capturing sales tax and property tax to pay for public improvements associated with a development project. The increased assessed value of the property after the improvement and the sales tax and other revenue generated from the project itself goes to pay back the T.I.F. bonds through PILOTS (Payments in Lieu of Taxes) and EATS (Economic Activity Taxes).
The Cambridge Commons Special Allocation Fund was created to make public improvements to the north side of the 3400 block of Cambridge (former Bruce School) for a new twenty unit single attached housing development. This Fund will dissolve upon the retirement of the T.I.F. obligations.
Deer Creek Development Special Allocation Fund— Tax Increment Financing (T.I.F.) is an economic development tool available to municipalities in the State of Missouri. It works by capturing sales tax and property tax to pay for public improvements associated with a development project. The increased assessed value of the property after the improvement and the sales tax and other revenue generated from the project itself goes to pay back the T.I.F. bonds through PILOTS (Payments in Lieu of Taxes) and EATS (Economic Activity Taxes).
The Deer Creek Development Special Allocation Fund was created to allow the redevelopment of the blighted Deer Creek Shopping Center; the majority of which had been vacant since the closing of the Kmart store in 2001.
Special Business District Fund – The Special Business District Fund was created with voter approval to finance improvement projects in the designated Maplewood Business District. The Fund generates revenue from the tax assessed on commercial property within the business district and from a surcharge on business licenses issued to businesses operating within the Special Business District.
Projects that have been funded in the past include storefront renovations, Christmas decorations and recycle containers in the downtown district, and tree scaping along Manchester and Sutton. This fund is also used to sponsor events in the special business downtown shopping district. The Fund is a city fund and all purchases/expenditures are subject to the City’s finance and accounting practices.
¼ Cent Fire Sales Tax Fund – The ¼ Cent Fire Sales Tax was passed by the voters on April 8, 2003 for the purpose of providing additional funding to the fire department. The additional funding allows salaries of the fire department personnel to be competitive with surrounding municipal fire departments. The ¼ cent sales tax allows the fire department to purchase equipment to improve the safety of the fire department personnel and to provide better services to our citizens.
Firehouse Bond Project—The Firehouse Bond project fund was created to account for the issuance of bonds, and related expenditures for the construction of a new firehouse to be located to the west of City Hall on Manchester Road.
In November of 2014, voters of the City of Maplewood, authorized the assessment of an additional property tax to fund the repayment of $6,000,000 in general obligation bonds. The general obligation bonds were issued in March of 2015 for the specific purpose of construction of a new firehouse, and purchase of related equipment.
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Management’s Discussion & Analysis – Unaudited (continued)
FIDUCIARY FUNDS
Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs.
NOTES TO THE BASIC FINANCIAL STATEMENTS
GOVERNMENTAL FUNDS FINANCIAL ANALYSIS
At the end of the current fiscal year, the governmental funds reported combined fund balance of $13,591,899 with a net decrease in total fund balance of $1,821,540. This was substantially related to the construction of the firehouse that was funded by the Series 2015 general obligation bond issue. Total governmental fund revenues for fiscal year ending June 30, 2018, totaled $16,860,354 while governmental fund expenditures for fiscal year ending June 30, 2018, totaled $18,689,394.
At the end of the current fiscal year, the City was able to report positive fund balances in nearly all of its funds. The fund balance of the general fund decreased approximately $1,256,425 primarily due to expenditures exceeding revenues in 2018. This is primarily due to the firehouse construction costs that exceeded the bond proceeds.
The Parks and Storm water fund reported an increase in fund balance totaling $274,629. This is due to revenues being more than expenses.
The Solid Waste Disposal Fund, Sewer Lateral Fund, and the Firehouse Bond Project funds had negative fund balances on June 30, 2018, totaling $188,505, $31,041, and $239,250, respectively. The negative fund balance is due to expenses in excess of revenues. The City is taking steps to alleviate this situation. In April of 2018, voters approved an increase in the Solid Waste Property Tax. The City is monitoring Sewer Lateral projects, and hopes to offset the negative fund balance with the increased assessment. The City has supplemented the Firehouse Construction with funds from the general fund.
CAPITAL ASSETS
The City has invested $29,844,490 in capital assets, net of accumulated depreciation. This investment in capital assets includes land, buildings, park facilities, roads, sidewalks, bridges, vehicles, and machinery and equipment. This amount represents a net increase from the fiscal year ended June 30, 2017 including additions and deductions of $2,359,022. The majority of the increase in capital assets is due to infrastructure improvements, and the construction of the firehouse. Additional information on capital assets can be found in Note 3 to the basic financial statements.
LONG TERM DEBT
As of June 30, 2018, the City had outstanding long-term debt obligations of $23,292,773. The decrease from last year of $2,155,680 is due to regular debt payments. Further information regarding debt may be found in Note 4 of the basic financial statements.
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Management’s Discussion & Analysis – Unaudited (continued)
BUDGET VARIANCES
Revenues for the general fund were estimated at $9,287,650 and the City actually received $8,593,487 a decrease of 8% ($694,163). The majority of this decrease was in fines and forfeitures and licenses and permits.
Expenditures in the general fund legislative department were $7,963 lower than budgeted. The majority of the decrease was due to travel expense being less than anticipated.
Expenditures in the general fund executive department were $5,776 lower than budgeted. The majority of the decrease was due to professional service cost being less than anticipated.
Expenditures in the general fund legal department were $209,092 lower than budgeted due to reduced legal fees.
Expenditures in the general fund police and fire departments were $264,588 lower than budgeted. The majority of the savings was in the areas of training and overtime expense.
Expenditures in the general fund highways and traffic department were $177,647 lower than budgeted. The variance was due to decreased overtime and REJIS expenses. Additionally, the city had a utility audit, which has resulted in lower energy expense.
ECONOMIC OUTLOOK
Maplewood turned the corner financially in fiscal year 2005. The City’s fund balances, overall, for almost all funds have increased every year since then including 2018, with some exceptions as noted. Unrestricted fund balances are projected to increase again in 2018 as the nation’s economy slowly improves. It is anticipated that property tax collections for 2018 will be the same as in past years. With pending business developments, the City anticipates increased sales taxes for the general fund, parks and recreation storm water fund, and capital projects funds.
On August 28, 2017, Missouri Senate Bill 5 took effect for all municipal courts, and provided for minimum operating standards. With the implementation of this law, municipal courts in the region have seen a sharp decrease in court revenues. This law requires a municipal court to consider a defendant’s financial situation and ability to pay before assessing fines. It also requires that municipal courts attempt other rehabilitation methods, such as community service, prior to assessing fines. While the City of Maplewood has always operated its municipal court within the State guidelines, and collected court revenues that were well below the State’s requirements, this bill has significantly affected the City’s court revenues.
In July 2017, the Missouri Supreme Court established a policy to implement a statewide court automation system. All St. Louis County circuit courts are to implement this software by July of 2019. Further, the Missouri Supreme Court is enforcing Supreme Court Rule 34.04, Appendix A—Minimum Operating Standards for all St. Louis County courts, which will mean some changes in the way the City accounts for the court monies.
While the economy has caused some small businesses to close, the City has continued its successful efforts in recent years in continuing to attract unique businesses to our downtown shopping district; thus, even though we have lost businesses, we have successfully replaced them. It is anticipated that as the economy improves, the number of businesses located in the Maplewood downtown business district will increase.
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Management’s Discussion & Analysis – Unaudited (continued)
MAJOR INITIATIVES ANTICIPATED FOR THE YEAR:
In this fiscal year, Tech Electronics began construction on its new headquarters in the Sunnen Business District. The firehouse completed construction, and is actively in use. Several new businesses opened in our downtown business district, and several more have contacted City staff regarding new operations.
FOR THE FUTURE
The City of Maplewood must continue to focus its economic development efforts on retaining its economic base by helping businesses expand to their full potential while at the same time attracting new businesses, both large and small, to start or relocate in the community. The City must continue to conserve natural resources and become a leader in the community in the area of green initiatives including energy conservation and green building and construction projects. The City received the Green Power Community of the Year Award from Ameren Pure Power. It is one of only 60 cities in the country to receive this award.
A future plan will continue to investigate transportation oriented development that will improve the quality of life for our residents and provide additional revenues for City operations. The mayor, city council, and staff will continue working with residents, large and small retailers, manufacturers and office/warehouse operations to ensure that decisions made by the City are in the best interest of the community and to serve and improve our residential and business communities. We will strive to insure quality and lasting developments that will anchor the City’s economy, increase the values of property throughout the City and improve the aesthetics of the community and make the City a premier address within St. Louis County.
FINANCIAL CONTACTS
This financial report is designed to provide the reader with a general overview of the City’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Office of the City Manager, City of Maplewood, 7601 Manchester Ave., Maplewood MO 63143.
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Basic Financial Statements
CITY OF MAPLEWOOD, MISSOURI
STATEMENT OF NET POSITION JUNE 30, 2018
Governmental Activities Assets: Cash and investments $ 10,334,616 Receivables, net: Taxes 1,204,148 Interest and other 42,918 Prepaid items and other assets 173,395 Net pension asset - PERS 7,151,226 Restricted assets: Cash and investments 361,687 Held by trustees 2,454,867 Nondepreciable capital assets 10,636,128 Depreciable capital assets, net 19,208,362 Total Assets 51,567,347 Deferred Outflows of Resources: Deferred amounts related to pensions 2,196,449 Deferred charge on refunding 9,687 Total Deferred Outflows of Resources 2,206,136 Liabilities: Accounts payable 581,609 Bail bonds payable 28,420 Accrued salaries and benefits 244,711 Accrued interest payable 199,883 Long-Term Liabilities: Due within one year 1,156,146 Due in more than one year 22,136,627 OPEB obligation 523,768 Net pension liability - LAGERS 8,893,966
Total Liabilities 33,765,130 Deferred Inflows of Resources: Deferred amounts related to pensions 979,321 Deferred amounts related to OPEB 13,778 Total Deferred Inflows of Resources 993,099
Net Position: Net investment in capital assets 22,707,520 Restricted for: TIF bonds and notes 2,491,478 Capital projects 1,485,599 Fire department 362,557 Park and stormwater 1,841,211 Solid waste disposal 19,257 Law enforcement 304,356 Maplewood business district 101,965 Debt service 370,527 Unrestricted (10,669,216) Total Net Position $ 19,015,254
See accompanying notes to basic financial statements - 16 - CITY OF MAPLEWOOD, MISSOURI
STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2018
Net (Expense) Revenue and Changes Program Revenues in Net Position Operating Capital Charges for Grants and Grants and Governmental Functions/Programs Expenses Services Contributions Contributions Activities Governmental activities: General government$ 2,120,495 $ 951,803 $ - $ - $ (1,168,692) Public safety 6,431,259 427,232 48,984 1,713 (5,953,330) Public works 3,153,560 6,203 532,107 143,527 (2,471,723) Sanitation 638,212 - 4,000 - (634,212) Parks and recreation 640,971 - - - (640,971) Community development 152,339 - - - (152,339) Interest and fiscal charges 1,118,649 - - - (1,118,649)
Total Governmental Activities $ 14,255,485 $ 1,385,238 $ 585,091 $ 145,240 (12,139,916) General Revenues: Taxes: Property taxes, levied for general purpose 844,535 Property taxes, levied for debt service 565,686 Property taxes, levied for tax increment debt 1,615,863 Property taxes, levied for solid waste 352,133 Property taxes, levied for special business district 51,376 Sales and local taxes 7,831,007 Gross receipts taxes 2,038,962 Miscellaneous taxes 175,856 Earnings on investments 34,949 Gain on disposal of asset - Miscellaneous 1,088,538 Total General Revenues 14,598,905 Change in Net Position 2,458,989 Net Position, Beginning 16,556,265 Net Position, Ending $ 19,015,254
See accompanying notes to basic financial statements - 17 - CITY OF MAPLEWOOD, MISSOURI
BALANCE SHEET - GOVERNMENTAL FUNDS JUNE 30, 2018
Nonmajor Major Funds Funds
1/4 Cent Solid 1/2 Cent Other Total Park and Fire Waste Capital Firehouse Governmental Governmental General Storm Sales Tax Disposal Improvement Bond Project Funds Funds
Assets: Cash and investments: Held by trustees$ - $ - $ - $ - $ - $ - $ 2,454,867 $ 2,454,867 Restricted 172,086 - - - - - 189,601 361,687 Unrestricted 6,227,976 1,375,824 539,642 92,374 1,618,407 - 480,393 10,334,616 Receivables, net: Taxes 667,405 121,454 60,727 19,918 121,978 - 212,666 1,204,148 Interest and other 2,913 - - - 40,005 - - 42,918 Prepaid items 159,241 - - - - - 14,154 173,395 Due from other funds 622,171 385,972 - - 28,641 8,104 226,339 1,271,227 Total Assets $ 7,851,792 $ 1,883,250 $ 600,369 $ 112,292 $ 1,809,031 $ 8,104 $ 3,578,020 $ 15,842,858
Liabilities: Accounts payable$ 161,139 $ 38,955 $ 3,838 $ 2,805 $ 323,432 $ 6,655 $ 44,785 $ 581,609 Bail bonds payable 28,420 ------28,420 Accrued salaries and benefits 223,791 - 20,920 - - - - 244,711 Due to other funds 447,029 921 213,054 278,735 - 240,699 90,789 1,271,227 Total Liabilities 860,379 39,876 237,812 281,540 323,432 247,354 135,574 2,125,967
Deferred Inflows of Resources: Unavailable revenues: Property taxes 44,230 - - 19,257 - - 21,500 84,987 Grants - - - - 40,005 - - 40,005 Total Deferred Inflows of Resources 44,230 - - 19,257 40,005 - 21,500 124,992
Fund Balances: Nonspendable: Prepaid items 159,241 - - - - - 14,154 173,395 Restricted for: Park and stormwater - 1,843,374 - - - - - 1,843,374 Fire department - - 362,557 - - - - 362,557 TIF projects and debt ------2,636,736 2,636,736 Capital improvements - - - - 1,445,594 - - 1,445,594 Law enforcement ------304,356 304,356 Maplewood business district ------101,965 101,965 Debt service ------394,776 394,776 Committed: Employee welfare 172,086 ------172,086 Assigned: Subsequent year's budget 386,108 ------386,108 Ryan Hummert Scholarship 108,616 ------108,616 Unassigned 6,121,132 - - (188,505) - (239,250) (31,041) 5,662,336 Total Fund Balances 6,947,183 1,843,374 362,557 (188,505) 1,445,594 (239,250) 3,420,946 13,591,899
Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 7,851,792 $ 1,883,250 $ 600,369 $ 112,292 $ 1,809,031 $ 8,104 $ 3,578,020 $ 15,842,858
See accompanying notes to basic financial statements - 18 - CITY OF MAPLEWOOD, MISSOURI
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION JUNE 30, 2018
Total Fund Balance - Governmental Funds $ 13,591,899
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets used in governmental activities are not financial resources and therefore are not reported in the fund statements. The cost of the assets is $57,974,331 and accumulated depreciation is $28,129,841. 29,844,490
Property taxes assessed by the City, but not collected within 60 days of year end are deferred within the fund financial statements. However, revenue for this amount is recognized in the government- wide statements. 84,987
Grant revenue earned by the City, but not collected within 60 days of year end are deferred within the fund financial statements. However, revenue for this amount is recognized in the government-wide statements. 40,005
Long-term liabilities applicable to the City's governmental activities are not due and payable in the current period and accordingly, are not reported as liabilities within the fund financial statements. Interest on long-term debt and accrued compensation absences are not accrued in governmental funds, but rather is recognized as an expenditure when due. All liabilities - both current and long-term - are reported on the government-wide statement of net position. Discounts, premiums and deferred amounts on refunding are reported in the governmental fund financial statements when the debt was issued whereas these amounts are deferred and amortized over the life of the debt as an adjustment to interest expense on the government-wide financial statements. Balances as of June 30, 2018, are:
Accrued compensated absences, vacation and compensatory time-off (490,116) Accrued interest on long-term debt (199,883) Net pension asset - PERS 7,151,226 Net pension liability - LAGERS (8,893,966) Deferred outflows of resources related to pensions: PERS 755,938 LAGERS 1,440,511 Deferred inflows of resources related to pensions: PERS (394,345) LAGERS (584,976) OPEB liability (523,768) Deferred inflows of resources related to OPEB (13,778) General obligation bonds (6,485,000) Capital lease (529,034) Tax increment revenue bonds and notes (15,656,000) Unamortized bond (premium) discount (132,623) Unamortized deferred refunding 9,687
Total Net Position - Governmental Activities $ 19,015,254
See accompanying notes to basic financial statements - 19 - CITY OF MAPLEWOOD, MISSOURI
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2018
Nonmajor Major Funds Funds
1/4 Cent Solid 1/2 Cent Other Total Park and Fire Waste Capital Firehouse Governmental Governmental General Storm Sales Tax Disposal Improvement Bond Project Funds Funds Revenues: Taxes$ 7,012,739 $ 1,351,662 $ 675,831 $ 354,542 $ 1,318,164 $ - $ 3,291,297 $ 14,004,235 Licenses and permits 877,225 - - - - - 53,846 931,071 Intergovernmental 50,697 - - 4,000 286,106 - - 340,803 Charges for services 13,857 - - 20,669 - - - 34,526 Fines and forfeitures 427,232 ------427,232 Interest 10,669 2,406 2,052 164 1,393 - 18,264 34,948 Miscellaneous 201,068 - - 15,650 723,997 - 146,824 1,087,539 Total Revenues 8,593,487 1,354,068 677,883 395,025 2,329,660 - 3,510,231 16,860,354
Expenditures: Current: General government 1,898,362 ------1,898,362 Public safety 5,311,916 - 709,185 - - 53,791 - 6,074,892 Public works 1,733,935 ------1,733,935 Sanitation - - - 560,681 - - 77,531 638,212 Parks and recreation - 628,582 - - - - - 628,582 Community development ------131,139 131,139 Capital outlay 913,199 48,057 6,032 - 1,390,805 1,822,737 23,505 4,204,335 Debt Service: Principal retirement - - - - 251,945 - 1,974,000 2,225,945 Interest and fiscal charges - - - - 22,190 - 1,131,802 1,153,992 Total Expenditures 9,857,412 676,639 715,217 560,681 1,664,940 1,876,528 3,337,977 18,689,394
Excess (Deficiency) of Revenues Over (Under) Expenditures (1,263,925) 677,429 (37,334) (165,656) 664,720 (1,876,528) 172,254 (1,829,040)
Other Financing Sources (Uses): Transfers in ------402,800 402,800 Transfers out - (402,800) - - - - - (402,800) Proceeds from disposal of capital assets 7,500 ------7,500 Total Other Financing Sources (Uses) 7,500 (402,800) - - - - 402,800 7,500
Net Changes in Fund Balances (1,256,425) 274,629 (37,334) (165,656) 664,720 (1,876,528) 575,054 (1,821,540)
Fund Balances, Beginning 8,203,608 1,568,745 399,891 (22,849) 780,874 1,637,278 2,845,892 15,413,439
Fund Balances, Ending $ 6 ,947,183 $ 1 ,843,374 $ 362 ,557 $ (188 ,505) $ 1 ,445,594 $ (239 ,250) $ 3,420,946 $ 13,591,899
See accompanying notes to basic financial statements - 20 - CITY OF MAPLEWOOD, MISSOURI
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2018
Net Change in Fund Balances - Total Governmental Funds $ (1,821,540)
Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets meeting the capitalization threshold is allocated over their estimated useful lives and recorded as depreciation expense. In addition, the estimated fair value of donated assets is not reported in the governmental funds. However, in the Statement of Activities it is reported as program revenue. In the current period, these amounts are: Capital asset purchases 873,670 Additions to construction in progress 2,790,637 Depreciation expense (1,268,074) 2,396,233
Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds as follows: Taxes (3,301) Grants (142,579)
The governmental funds report debt proceeds as an other financing source, while repayment of principal is reported as an expenditure. In the Statement of Net Position, however, issuing debt increases long-term liabilities and does not affect the Statement of Activities. Similarly, repayment of principal is an expenditure in governmental funds financial statements but reduces the long-term liabilities in the Statement of Net Position. Repayment of bond and note principal 1,974,000
Some capital additions were financed through capital leases. In governmental funds, a capital lease arrangement is considered a source of financing, but in the Statement of Net Position, the lease obligation is reported as a liability. The principle payments on the capital leases are reported as expenditures in governmental funds but the repayment in the Statement of Net Position reduces the liability. Repayment of capital lease principal 251,945
Some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Under the modified accrual basis of accounting used in governmental funds, the effect of discounts and premiums when debt is first issued is reported in the operating statement, whereas these amounts are deferred and amortized in the Statement of Activities. These activities consist of: Increase in compensated absences (92,545) Increase in accrued interest 16,292 Pension expense - PERS 81,472 Pension expense - LAGERS (147,532) Increase in OPEB expense and related deferred inflows (35,296) (Premiums) discounts on debt issuance, net of amortization 22,280 Deferred amount on refunding, net of amortization (3,229)
In the Statement of Activities, the loss or gain on the sale or disposal of capital assets is recognized. The fund financial statements recognize only the proceeds from these assets. The amounts are as follows: Proceeds from disposal of capital assets (7,500) Gain (loss) on disposal of capital assets (29,711)
Change in Net Position of Governmental Activities $ 2,458,989
See accompanying notes to basic financial statements - 21 - CITY OF MAPLEWOOD, MISSOURI
STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUND TYPE - PENSION TRUST FUND JUNE 30, 2018
Pension Trust Fund Assets: Cash $ -
Investments: Money market 479,485 U.S. Treasury obligations 3,109,008 U.S. Agency obligations 866,502 Corporate bonds 2,340,592 Common stocks 2,783,230 Equity mutual funds 2,089,080 Equity exchange traded funds 1,961,851 Mortgages 103,277 Other 33,286 13,766,311
Taxes receivable 48,462
Employer contribution receivable 10,000
Accrued interest and dividends 49,964
Total Assets 13,874,737
Liabilities: Accounts payable 20,654 Cash overdraft 78,506
Total Liabilities 99,160
Net Position Restricted for Pension Benefits $ 13,775,577
See accompanying notes to basic financial statements - 22 - CITY OF MAPLEWOOD, MISSOURI
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUND TYPE - PENSION TRUST FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2018
Pension Trust Fund Additions: Contributions: Employer $ 582,564 Plan members 87,064 Total Contributions 669,628
Investment Income (Loss): Net decrease in the fair value of investments 749,559 Interest 330,834 Dividends 251,647 1,332,040 Less investment management fees 85,365 Net investment income (loss) 1,246,675 Total Additions 1,916,303
Deductions: Benefits: Annuity 454,255 Disability 64,037 Beneficiary 70,064 LAGERS 1,063,973 1,652,329 Refunds of contributions - Administrative expenses 3,530 Total Deductions 1,655,859
Net Increase 260,444
Net Position Restricted for Pension Benefits: Beginning 13,515,133
Ending $ 13,775,577
See accompanying notes to basic financial statements - 23 - CITY OF MAPLEWOOD, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Maplewood, Missouri (the “City”) was incorporated May 20, 1908, under the provisions of the State of Missouri. The City operates under a Mayor-Council-Manager form of government and provides the following services as authorized by its charter: Police and fire protection, street maintenance and improvements, parks and recreation, general administrative services, legislative services, judicial services and planning.
The accounting policies and financial reporting practices of the City conform to accounting principles generally accepted in the United States of America (GAAP) applicable to governmental entities. The more significant accounting policies of the City are described below:
The Financial Reporting Entity
The City’s financial reporting entity has been determined in accordance with governmental standards for defining the financial reporting entity and identifying entities to be included in its basic financial statements. These standards identify the City’s financial accountability for potential component units as the primary, but not only, criteria for inclusion. The City’s financial reporting entity consists of the City of Maplewood, Missouri (the primary government) and its component unit. The component unit discussed below is included in the City’s reporting entity because of the significance of its operational or financial relationships with the City.
Discretely Presented Component Unit
The discretely presented component unit column in the government-wide financial statements includes the financial data of the City’s component unit, as described below. It is reported in a separate column to emphasize that it is legally separate from the City.
Industrial Development Authority (IDA) - The IDA is an industrial development corporation organized under the laws of the State of Missouri for the specific purpose of promoting and developing commercial, industrial, and manufacturing enterprise and encouraging employment within the boundaries of the City. The members of the IDA board are appointed by the Mayor. The law authorizes the corporation to issue industrial development bonds after approval of the City Council. The bonds do not constitute indebtedness of the City and are secured solely by revenues received from the commercial organizations on whose behalf the bonds are issued. The City has no responsibility for the operating expenses of the corporation; as such expenses are financed by fees charged to the commercial organizations. Separate financial statements are not prepared for the IDA. During the year ended June 30, 2018, there was no activity for the IDA; therefore, there is no separate column in the government-wide financial statements.
Related Organizations
The City’s officials are also responsible for appointing members to the boards of other organizations, but the City’s accountability for these organizations does not extend much further beyond making such appointments. These related organizations are not included as component units within the City’s financial reporting entity.
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Notes to Basic Financial Statements (continued)
Maplewood Public Library - The Maplewood Public Library is governed by a board of trustees appointed by the City Council. The City has no significant influence over the Library’s management, budget or policies. The Library reports independently.
Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the City and its component unit. The effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes, intergovernmental revenues and other nonexchange transactions, are reported separately from the component unit for which the City is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include: 1) charges for services to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Taxes, unrestricted interest earnings, and other miscellaneous revenues not properly included among program revenues are reported instead as general revenues.
Following the government-wide financial statements are separate financial statements for the City’s governmental funds and fiduciary fund. Fiduciary funds are excluded from the government-wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements. The City has determined that the General Fund, the Park and Storm Fund, the ¼ Cent Fire Sales Tax Fund, the Solid Waste Disposal Fund, the 1/2 Cent Capital Improvement Fund, and the Firehouse Bond Project are major governmental funds. All other governmental funds are reported in one column labeled "Other Governmental Funds." The total fund balances for all governmental funds are reconciled to the total net position for governmental activities as shown on the statement of net position. The net change in fund balance for all governmental funds is reconciled to the total change in net position as shown on the statement of activities.
Fund Accounting
The fund financial statements of the City are organized on the basis of funds, each of which is considered a separate fiscal and accounting entity with self-balancing accounts that comprise its assets, liabilities, deferred outflows/inflows of resources, fund balance, revenues, and expenditures. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The following fund types are used by the City:
Governmental Fund Types
Governmental funds are those through which most governmental functions of the City are financed. The acquisition, use and balances of the City’s expendable financial resources and the related liabilities are accounted for through governmental funds. The measurement focus is upon determination of and changes in financial position rather than upon net income.
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Notes to Basic Financial Statements (continued)
The following are the City’s major governmental funds:
General Fund - The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund.
Park and Storm Fund - The Park and Storm Fund is used to account for a ½ cent sales tax that was created by voter approval. The uses of the funds from this tax are restricted to parks and recreation operations and improvements and storm water infrastructure improvements.
1/4 Cent Fire Sales Tax Fund - The 1/4 Cent Fire Sales Tax Fund is used to account for sales tax monies that was created by voter approval for the purpose of providing additional funding to the fire department.
Solid Waste Disposal Fund – The Solid Waste Disposal Fund was created in April 2004 by voter approval. The tax must be used for the purpose of funding residential trash collection for single family, duplexes, triplexes, and four family residences.
1/2 Cent Capital Improvement Fund - The 1/2 Cent Capital Improvement Fund is used to account for a sales tax levy and grants restricted for funding City capital improvements.
Firehouse Bond Project Fund - The Firehouse Bond Project Fund is used to account for the proceeds from the General Obligation Bonds, Series 2015, to acquire fire equipment and apparatus and constructing, equipping, improving and furnishing a municipal firehouse, together with related facilities.
The other governmental funds of the City are considered non-major. They are special revenue funds which account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes and debt service funds which are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest and related costs.
Fiduciary Fund Type - Trust and Agency Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. The Pension Trust Fund accounts for the City’s Policemen’s and Firemen’s Pension Fund. Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of the results of operations. As of June 30, 2018, the City does not have any agency funds.
Measurement Focus
Measurement focus refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the basic financial statements.
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Notes to Basic Financial Statements (continued)
Government-Wide Financial Statements
The government-wide financial statements are prepared using the economic resources measurement focus. All assets, all liabilities, and all deferred outflows/inflows of resources associated with the operation of the City are included on the statement of net position.
Fund Financial Statements
All governmental funds are accounted for using a flow of current financial resources measurement focus. With this measurement focus, only current assets, current liabilities and current outflows/inflows of resources generally are included on the balance sheet. The statement of revenues, expenditures and changes in fund balances reports on the sources (i.e., revenues and other financing sources) and uses (i.e., expenditures and other financing uses) of current financial resources. This approach differs from the manner in which the governmental activities of the government-wide financial statements are prepared. Governmental fund financial statements therefore include a reconciliation with brief explanations to better identify the relationship between the government-wide statements and the statements for governmental funds. Reporting of fiduciary funds focuses on net position and changes in net position.
Basis of Accounting
Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. Government-wide financial statements are prepared using the accrual basis of accounting. Fiduciary funds also use the accrual basis of accounting. Governmental funds use the modified accrual basis of accounting. Differences in the accrual and modified accrual basis of accounting arise in the recognition of revenue, the recording of unearned or deferred revenue and in the presentation of expenses versus expenditures.
Revenues - Exchange and Non-Exchange Transactions
Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded on the accrual basis when the exchange takes place. On a modified accrual basis, revenue is recorded in the year in which the resources are measurable and become available. Available means that the resources will be collected within the current year or are expected to be collected soon enough thereafter to be used to pay liabilities of the current year.
Non-exchange transactions, in which the City receives value without directly giving equal value in return, include property taxes, grants, entitlements and donations. On an accrual basis, revenue from property taxes is recognized in the year for which the taxes are levied. Revenue from grants, entitlements and donations is recognized in the year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the year when use is first permitted, matching requirements, in which the City must provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the City on a reimbursement basis. On a modified accrual basis, revenue from non-exchange transactions must also be available before it can be recognized. For the City, available means expected to be received within 60 days of year end.
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Notes to Basic Financial Statements (continued)
Under the modified accrual basis, the following revenue sources are considered to be both measurable and available at year end: state-levied locally shared taxes (including gasoline tax), fines and forfeitures, licenses and permits, interest, grants and rentals.
Cash and Cash Equivalents
Cash and cash equivalents include amounts in demand deposits as well as short-term time deposits with a maturity date within three months of the date acquired by the City. Cash deposits are reported at carrying amount which reasonably estimates fair value.
Investments
Investments are measured at fair value within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.
Property Taxes
Property taxes attach as an enforceable lien on property as of December 31. Taxes are levied on November 1 of each year based on the assessed valuation of all real and personal property located in the City as of the prior January 1. Payment is due upon receipt of billing and becomes delinquent after December 31. Property taxes are billed and collected by St. Louis County and remitted by the County to the City.
The assessed valuation of the tangible taxable property for the calendar year 2017, for purposes of local taxation, is as follows:
Total for City Total Less TIF Taxation
Real Estate$ 162,163,561 $ 10,401,020 $ 151,762,541 Personal Property 20,952,853 - 20,952,853 $ 183,116,414 $ 10,401,020 $ 172,715,394
The tax levy per $100 of the assessed valuation of tangible taxable property, for purposes of local taxation, was as follows:
Real Estate Personal Residential Commercial Property
General Fund $ .170 $ .466 $ .567 Pension Trust Fund .359 .396 .445 Solid Waste Fund .146 .158 .218 Debt Service Fund .280 .280 .280 Special Business District .100 .262 -
$1.055 $1.562 $1.510
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Notes to Basic Financial Statements (continued)
The receipts of current and delinquent property taxes during the year ended June 30, 2018, aggregated approximately 87 percent of the current assessment computed on the basis of the levy as shown above.
Interfund Transactions
During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. Transfers of resources from fund receiving revenues to the fund through which the resources are to be expended are recorded as transfers and are reported as other financing sources (uses) in the fund financial statements. Transfers are reported when incurred as transfers in by the recipient fund and as transfers out by the disbursing fund. Elimination of interfund activity has been made for governmental activities in the government-wide financial statements.
Prepaid Items
Payments made to vendors for services that will benefit periods beyond June 30, 2018, are recorded as prepaid items. A current asset for the prepaid amount is recorded at the time of the purchase and an expenditure/expense is reported in the year in which services are consumed.
Capital Assets
Capital assets, which include land, land improvements, buildings and improvements, machinery and equipment, vehicles, and infrastructure (e.g., streets, sidewalks, roads, bridges and similar items), are reported in the governmental activities column in the government-wide financial statements, net of accumulated depreciation. Capital assets are defined by the City as assets with an estimated useful life in excess of one year with an initial, individual cost of $5,000 or more. Capital assets are recorded at historical cost or estimated historical cost. Donated capital assets are recorded at their estimated acquisition value on the date of the donation.
General infrastructure assets acquired prior to July 1, 2003, consist of the road network assets that were acquired or that received substantial improvements and are reported at estimated historical cost using deflated replacement cost. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are expensed as incurred.
Capital assets are depreciated using the straight-line method over the following estimated useful lives:
Land Improvements 10 - 20 years Buildings and Improvements 40 years Machinery and Equipment 5 - 10 years Vehicles 5 -7 years Infrastructure 20 - 40 years
Compensated Absences
City employees earn vacation time based on their length of service. Accrued vacation time is payable to employees upon termination.
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Notes to Basic Financial Statements (continued)
Vested or accumulated vacation leave is accrued as earned and is recorded in the government-wide financial statements. A liability for this amount is reported in governmental funds only if the amounts due at year end have matured.
Sick leave is based on continuous months of service with the City and may not exceed 120 days at any time. The cost of sick days is recognized when paid.
Other Post-Employment Benefit Liability
The City calculates and records a total other post-employment benefit (OPEB) liability in the government-wide financial statements. The total OPEB liability is measured as the portion of the present value of projected benefit payments to be provided to current active and inactive employees that is attributed to those employees’ past periods of service. The total OPEB liability is determined through an actuarial valuation. Details related to the City’s postretirement health care benefits provided, OPEB liability and its calculation are provided at Note 10. The liability is typically liquidated by the General Fund.
Long-Term Liabilities
In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the statement of net position. Bond premiums and discounts are deferred and amortized over the life of the respective bonds using the straight-line method. Bonds payable are reported net of applicable bond premiums or discounts.
In the governmental fund financial statements, governmental funds recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.
In addition to liabilities, the statement of net position and balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The government has one type which arises only under a modified accrual basis of accounting, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from two sources, property taxes and grant money earned but not
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Notes to Basic Financial Statements (continued)
yet available. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.
In the government-wide financial statements, components of pension expense that are recognized over a period of time are classified as either deferred outflows of resources (using plan assets that are applicable to a future reporting period) or deferred inflows of resources (acquiring plan assets that are applicable to a future reporting period). Employer contributions subsequent to the measurement date of the net pension liability are required to be reported as deferred outflows of resources.
Pensions
The City records a net pension (asset) liability in the government-wide financial statements for defined benefit plans. The (asset) liability is calculated as the portion of the present value of projected benefit payments to be provided through the pension plan to current active and inactive employees that is attributed to those employees’ past periods of service (total pension liability), less the amount of the pension plan’s fiduciary net position.
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Missouri Local Government Employees Retirement System (LAGERS) and additions to/deductions from LAGERS fiduciary net position have been determined on the same basis as they are reported by LAGERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Details of the City’s defined benefit plans are provided in Note 6.
Governmental Fund Balances
In the governmental fund financial statements, the following classifications are used to define the governmental fund balances:
Nonspendable - This consists of the governmental fund balances that are not in spendable form or legally or contractually required to be maintained intact. The City’s nonspendable fund balance consists of prepaid items.
Restricted - This consists of the governmental fund balances that are legally restricted by outside parties or by law through constitutional provisions or enabling legislation. The City’s restricted funds consist of various taxes approved by voters for specific purposes and TIF projects and debt obligations.
Committed - This consists of the governmental fund balances that can only be used for specific purposes pursuant to constraints imposed by formal action (resolution) of the City Council, the City’s highest level of decision-making authority. The City’s committed fund balance consists of cash and cash equivalents restricted for cash held in escrow payable to the City Manager upon termination or retirement.
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Notes to Basic Financial Statements (continued)
Assigned - This consists of the governmental fund balances that are intended to be used for specific purposes by a) City Council or b) City Manager. The city charter specifies that the City Manager is the chief administrative officer of the City which indicates the governing body has delegated the authority to assign fund balances to the City Manager. The City’s assigned fund balance includes Ryan Hummert scholarship and amounts budgeted in the subsequent year.
Unassigned - This consists of the governmental funds that do not meet the definition of “nonspendable,” “restricted,” “committed,” or “assigned.” The general fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than the general fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.
The City’s policy is to maintain an unrestricted fund balance of not less than 25 percent of annual operating expenditures for the fiscal year. The City’s basic goal is to maintain annual expenditure increases at a reasonable growth rate, and to limit expenditures to anticipated revenues in order to maintain a balanced budget.
Net Position
In the government-wide financial statements, net position is displayed in three components as follows:
Net Investment in Capital Assets - This consists of capital assets, net of accumulated depreciation, less the outstanding balances of any bonds, notes, or other borrowings that are attributable to the acquisition, construction, or improvements of those assets.
Restricted - This consists of net position that is legally restricted by outside parties or by law through constitutional provisions or enabling legislation.
Unrestricted - This consists of net position that does not meet the definition of “restricted” or “net investment in capital assets.”
Use of Restricted Resources
When an expense is incurred that can be paid using either restricted or unrestricted resources (net position), the City’s policy is to first apply the expense toward restricted resources and then toward unrestricted resources. In governmental funds, the City’s policy is to first apply the expenditure toward restricted fund balance and then to other, less-restrictive classifications-committed and then assigned fund balances before using unassigned fund balances.
Encumbrances
The City employs encumbrance accounting under which obligations in the form of purchase orders, contracts and other commitments for the expenditure of funds are reported as assigned fund balances since they do not constitute expenditures or liabilities. Appropriations with outstanding
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Notes to Basic Financial Statements (continued)
commitments or encumbrances are carried into the following year. Unexpended, unencumbered appropriations lapse at the end of the year.
Estimates and Assumptions
The preparation of basic financial statements in conformity with accounting principles generally accepted in the United States of America requires the City to make estimates and assumptions that affect the reported amounts of assets and liabilities at fiscal year-end and revenues and expenditures or expenses during the reporting period. Actual results could differ from those estimates.
Adoption of New Accounting Standard
For the year ended June 30, 2018, the City adopted GASB Statement No. 75, “Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions”. The objective of this statement is to revise and establish new financial reporting requirements for most governments whose employees are provided with postemployment benefits other than pensions. As a result, the net position for the year ended June 30, 2017 has been restated as follows:
Government-Wide Financial Statements - Governmental Activities:
Net position, June 30, 2017, as previously reported $ 16,945,215
To eliminate the other postemployment benefit liability prior to GASB Statement No. 75 113,300
To record the total other postemployment benefit liability at the beginning of the year according to GASB Statement No. 75 (502,250)
Net position, June 30, 2017, restated $ 16,556,265
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Notes to Basic Financial Statements (continued)
2. CASH AND INVESTMENTS
The City is governed by the deposit and investment limitations of state law. It is the policy of the City to invest public funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the City and conforming to all state and local statutes governing the investment of public funds. Statutes require the City to invest in obligations of the U.S. Treasury, agencies and instrumentalities. The Pension Trust Fund is authorized to invest in corporate stocks, bonds and other investments as allowed by state law. The deposits and investments held at June 30, 2018, and reported at fair value, are as follows:
Carrying Type Value
Deposits: Demand deposits$ 6,951,952 Cash on hand 8,944 Non-negotiable certificates of deposit 3,563,322 10,524,218
Investments: Money market mutual funds 3,106,437 U.S. Treasury obligations 3,109,008 U.S Agency obligations 866,502 Corporate bonds 2,340,592 Common stock 2,783,230 Equity mutual funds 2,089,080 Equity ETF 1,961,851 Mortgages 103,277 Other 33,286 16,393,263 Total Deposits and Investments $ 26,917,481
Reconciliation to the Financial Statements: Statement of Net Position: Governmental Activities: Cash and cash equivalents$ 10,334,616 Restricted cash and investments 361,687 Held by trustees 2,454,867 Statement of Fiduciary Net Assets: Pension Trust Fund: Cash - Investments 13,766,311 $ 26,917,481
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Notes to Basic Financial Statements (continued)
The City has the following recurring fair value measurements as of June 30, 2018:
Money market mutual funds, common stock, equity mutual funds and equity ETF are valued using quoted market prices (Level 1 inputs). U.S. Treasury obligations, U.S. Agency obligations, mortgages and corporate bonds are valued using a matrix pricing model (Level 2 inputs).
Custodial Credit Risk- Deposits - Custodial credit risk is the risk that in the event of a bank failure, the City’s deposits may not be returned to it. The City does not have a deposit policy for custodial credit risk. As of June 30, 2018, the City’s bank balances were insured and collateralized, and therefore, not exposed to custodial credit risk.
Custodial Credit Risk - Investments - For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the government will not be able to recover the value of its investment or collateral securities that are in the possession of the outside party. The City does not have a policy for investment custodial credit risk. The City’s investments were not exposed to custodial credit risk this year.
Investment Interest Rate Risk - The City does not have a policy for investment interest rate risk. Maturities of investments held at June 30, 2018, are as follows:
Fair Investment Type Value < 1 Year 1 - 5 Years 6 - 10 Years > 10 Years
Money market mutual funds$ 3,106,437 $ 3,106,437 $ - $ - $ - U.S. Treasury obligations 3,109,008 468,378 2,297,389 343,241 - U.S. Agency obligations 866,502 - 314,942 226,170 325,390 Corporate bonds 2,340,592 139,567 1,307,709 893,316 - Common stock 2,783,230 *- - - - Equity mutual funds 2,089,080 *- - - - Equity ETF 1,961,851 *- - - - Mortgages 103,277 - - 103,277 - Other 33,286 - - 33,286 - $ 16,393,263 $ 3,714,382 $ 3,920,040 $ 1,599,290 $ 325,390
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Notes to Basic Financial Statements (continued)
Investment Credit Risk - Investment credit risk is the risk of loss due to the failure of the security issuer or backer. The City does not have a policy for investment credit risk. At June 30, 2018, the City’s investments subject to investment credit risk are as follows:
Fair Investment Type Value Rating
Money market mutual funds$ 3,106,437 AAA Corporate bonds 48,925 AAA Corporate bonds 356,970 AA Corporate bonds 1,115,050 A Corporate bonds 819,647 BAA Agency bonds 541,112 AAA Agency bonds 325,390 not rated Mortgages 103,277 AAA Other 33,286 AA
Concentration of Investment Credit Risk - Concentration of credit risk is required to be disclosed by the City for any single investment that represents 5 percent or more of total investments (excluding investments issued by or explicitly guaranteed by the U.S. government, investments in mutual funds, investments in external investment pools and investments in other pooled investments). The City does not have a policy for concentration of investment credit risk. At June 30, 2018, the City had $1,961,851 invested in equity exchange traded funds (ETF).
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Notes to Basic Financial Statements (continued)
3. CAPITAL ASSETS
The following is a summary of changes in capital assets - governmental activities for the year ended June 30, 2018:
Balance Balance July 1, June 30, 2017 Increases Decreases 2018 Governmental Activities: Nondepreciable capital assets Land and improvements$ 3,819,382 $ - $ - $ 3,819,382 Construction in progress 7,296,658 2,790,636 3,270,548 6,816,746 Total Capital Assets, Not Being Depreciated 11,116,040 2,790,636 3,270,548 10,636,128
Depreciable capital assets Land improvements 3,571,506 - - 3,571,506 Buildings and improvements 10,701,607 394,866 - 11,096,473 Machinery and equipment 2,114,205 99,325 84,635 2,128,895 Vehicles 2,037,407 119,214 292,206 1,864,415 Infrastructure 25,277,391 3,530,814 131,291 28,676,914
Total Capital Assets, Being Depreciated 43,702,116 4,144,219 508,132 47,338,203
Less accumulated depreciation for Land improvements 2,567,412 89,471 - 2,656,883 Buildings and improvements 3,611,127 298,630 - 3,909,757 Machinery and equipment 1,582,477 110,952 80,295 1,613,134 Vehicles 1,547,945 120,477 259,335 1,409,087 Infrastructure 18,023,727 648,544 131,291 18,540,980
Total Accumulated Depreciation 27,332,688 1,268,074 470,921 28,129,841
Total Depreciable Capital Assets, Net 16,369,428 2,876,145 37,211 19,208,362
Governmental Activities, Capital Assets, Net $ 27,485,468 $ 5,666,781 $ 3,307,759 $ 29,844,490
Within the statement of activities, depreciation expense is charged to functions of the primary government as follows:
Governmental Activities: General government$ 103,692 Public safety 131,570 Public works 1,032,812 $ 1,268,074
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Notes to Basic Financial Statements (continued)
4. LONG-TERM LIABILITIES
The following is a summary of changes in the City’s long-term liabilities for the year ended June 30, 2018:
Original Balance - Balance - Amount due Issuance July 1, June 30, within Amounts 2017 Additions Retirements 2018 one year
General Obligation Bonds: Series 2014 Refunding$ 2,880,000 $ 1,520,000 $ - $ 365,000 $ 1,155,000 $ 375,000 Series 2015 6,000,000 5,580,000 - 250,000 5,330,000 255,000
Limited Obligation Bonds: Tax Increment Revenue Bonds and Notes: Series 2005 12,150,000 7,320,000 - 660,000 6,660,000 - Series 2011 519,000 435,000 - 24,000 411,000 - Series 2013A 7,675,000 6,670,000 - 600,000 6,070,000 - Taxable Community Improvement District Sales Tax Revenue Bonds: Series 2013B 2,750,000 2,590,000 - 75,000 2,515,000 -
Capital lease obligations: City hall improvements 1,700,000 192,892 - 192,892 - - City hall energy project 645,695 588,087 - 59,053 529,034 60,536
Accrued compensated absences N/A 397,571 693,593 601,048 490,116 465,610
$ 34,319,695 $ 25,293,550 $ 693,593 $ 2,826,993 23,160,150 $ 1,156,146
Add: Unamortized premium (discount), net 132,623 Total $ 23,292,773
General obligation bonds are liquidated from the Debt Service Fund and Firehouse Bond Debt Service Fund. The Series 2005 TIF Revenue Bonds are liquidated from the Hanley Road Special Allocation Debt Service Fund. The Series 2011 TIF Revenue Bonds are liquidated from the Cambridge Commons Special Allocation Debt Service Fund. The Series 2013A and B limited obligation bonds are liquidated from the Deer Creek Center Special Allocation Debt Service Fund. Capital leases are liquidated from the General Fund or the ½ Cent Capital Improvement Fund. Compensated absences are generally liquidated from the general fund or where employees are assigned.
General Obligation Bonds
General obligation bonds are obligations of the City and are supported by a pledge of the City’s full faith and credit. Interest rates range from 2.0 percent to 3.0 percent. Payments of principal and interest on the Series 2015 and 2014 Refunding bonds will be made from revenues collected from an annual ad valorem tax to be imposed on all taxable tangible property within the City. In addition, revenues collected from the one-half cent sales tax in the Parks and Storm Fund are also available for appropriation for the Series 2014 Refunding bonds payment of principal and interest.
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Notes to Basic Financial Statements (continued)
The annual principal and interest requirements on general obligation bonds outstanding as of June 30, 2018, are as follows:
Year Ending June 30, Principal Interest Total
2019$ 630,000 $ 165,250 $ 795,250 2020 650,000 148,900 798,900 2021 665,000 135,900 800,900 2022 275,000 122,600 397,600 2023 280,000 117,100 397,100 2024-2028 1,495,000 492,500 1,987,500 2029-2033 1,725,000 273,000 1,998,000 2034-2036 765,000 34,650 799,650 $ 6,485,000 $ 1,489,900 $ 7,974,900
Limited Obligation Bonds
Tax Increment Financing (TIF) Bonds and Notes Payable
All tax increment financing bonds and notes payable are payable from payments in lieu of taxes attributable to the increase in assessed value of real property in the project area and economic activity taxes collected by the TIF District special revenue funds. Since annual repayment amounts will be determined based upon future revenues, a schedule of debt service requirements to maturity cannot be established.
During 2014, the City issued Tax Increment Revenue Bonds (Series 2013A) in the amount of $7,675,000 for the purpose of providing funds to assist with the Deer Creek Center Redevelopment Project. The Trustee (UMB Bank) is required by the Trust Indenture to maintain a Debt Service Reserve on the behalf of the City in the amount of $767,500. This reserve is to be used by the Trustee without further authorization solely for the payment of principal of and interest on the bonds if moneys otherwise available for such purpose are insufficient. As of June 30, 2018, a principal amount of $1,670,000 of the bonds will mature on May 1, 2029, if not repaid in full sooner, and will bear an interest rate of 4.250 percent while the remaining principal of $4,400,000 bearing an interest rate of 5.375 percent will mature on May 1, 2035, if not repaid in full sooner.
During 2011, the City issued Tax Increment Revenue Bonds (Series 2011) in the amount of $519,000 for the purpose of providing funds to assist with the Cambridge Commons Redevelopment Area Project. The Trustee (Carrollton Bank) is required by the Trust Indenture to maintain a Debt Services Reserve on behalf of the City in the amount of $51,900. This reserve is to be used by the Trustee without further authorization solely for the payment of principal of and interest on the bonds if moneys otherwise available for such purpose are insufficient. As of June 30, 2018, a principal amount of $411,000 of the bonds will mature on March 1, 2028, if not repaid in full sooner, and will bear an interest rate of 7.5 percent.
During 2005, the City issued Tax Increment Refunding Revenue Bonds (Series 2005) in the amount of $12,150,000 for the purpose of providing funds to assist in the retail development of an area located on Hanley Road south of Folk Avenue. The Trustee (UMB Bank) is required by the Trust Indenture to maintain a Debt Service Reserve on behalf of the City in the amount of $660,125. This reserve is to be
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Notes to Basic Financial Statements (continued)
used by the Trustee without further authorization solely for the payment of principal of and interest on the bonds if moneys otherwise available for such purpose are insufficient. As of June 30, 2018, a principal amount of $1,510,000 of the bonds will mature on November 1, 2022, and will bear an interest rate of 5.20 percent while the remaining principal of $5,150,000 bearing an interest rate of 5.75 percent will mature on November 1, 2026, if not repaid in full sooner.
Taxable Community Improvement District Sales Tax Revenue Bonds
During 2014, in connection with the Deer Creek Center Redevelopment Project, the City issued $2,750,000 of Taxable Community Improvement District Sales Tax Revenue Bonds (Series 2013B). The principal and interest are to be paid solely by a 1 percent sales tax imposed by the Deer Creek Community Improvement District on businesses located within the Deer Creek Redevelopment Area. The Trustee (UMB Bank) is required by the Trust Indenture to maintain a Debt Service Reserve on the behalf of the City in the amount of $275,000. This reserve is to be used by the Trustee without further authorization solely for the payment of principal and interest on the bonds if moneys otherwise available for such purpose are insufficient. As of June 30, 2018, a principal amount of $965,000 of the bonds will mature on May 1, 2029, if not repaid in full sooner, and will bear an interest rate of 5.50 percent while the remaining principal of $1,550,000 bearing an interest rate of 6.75 percent will mature on May 1, 2035, if not repaid in full sooner. Since annual repayment amounts will be determined based upon future revenues, a schedule of debt service requirements to maturity cannot be established.
Capital Leases
During 2017, a Lease/Purchase Agreement in the amount of $645,695 was issued evidencing proportionate ownership interest in the right to receive rental payments to be paid by the City pursuant to a Lease/Purchase Agreement. The lease agreement stated a financial institution as the lessor and the City of Maplewood, Missouri ("City") as the lessee. The purpose of the Lease/Purchase Agreement is to finance energy efficiency improvements to the City's facilities. The Lease/Purchase Agreement is non-taxable, bears interest of 2.51 percent, and matures on December 28, 2025.
During 2009, a Lease/Purchase Agreement in the amount of $1,700,000 was issued evidencing proportionate ownership interest in the right to receive rental payments to be paid by the City pursuant to a Lease/Purchase Agreement. The lease agreement stated a financial institution as the lessor and the City of Maplewood, Missouri ("City") as the lessee. The purpose of the Lease/Purchase Agreement is to finance the cost of renovating City Hall. The Lease/Purchase Agreement is non- taxable, bears interest of 3.85 percent, and matures on March 19, 2018.
Rental payments equal to the principal and interest amounts are made annually throughout the life of the leases. Total building and improvement assets acquired through the capital leases and accumulated depreciation are $2,479,957 and $445,581, respectively.
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Notes to Basic Financial Statements (continued)
The annual rent payments and termination values as of June 30, 2018, are as follows:
Year Ending Termination June 30, Principal Interest Total Value
2019$ 60,536 $ 13,279 $ 73,815 $ 482,553 2020 62,055 11,759 73,814 418,637 2021 63,613 10,202 73,815 353,115 2022 65,209 8,605 73,814 285,950 2023 66,846 6,968 73,814 217,098 2024 68,524 5,290 73,814 146,519 2025 70,244 3,571 73,815 74,167 2026 72,007 1,807 73,814 - Total $ 529,034 $ 61,481 $ 590,515
Legal Debt Margin
Under the statutes of the State of Missouri, the limit of bonded indebtedness is 10 percent of the most recent assessed valuation. The computation is as follows:
Assessed valuation - 2017 tax year $183,116,414
Debt limit – 10% of assessed valuation $ 18,311,641 Amount of debt applicable to debt limit: Total general obligation bonded debt 6,485,000 Less: Amount available in debt service fund 394,776 Bonded indebtedness applicable to debt limit 6,090,224
Legal Debt Margin $ 12,221,417
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Notes to Basic Financial Statements (continued)
5. INTERFUND BALANCES AND TRANSFERS
The amounts due to or from individual funds represent interfund borrowings and arise in the normal course of business. Interfund borrowings are necessary due to the nature and timing of government receipts. The following is a summary of amounts due from and due to other funds as of June 30, 2018:
Receivable Fund Amount Payable Fund Amount
General$ 622,171 General$ 447,029 Major Special Revenue: Major Special Revenue: Park and Storm 385,972 Park and Storm 921 Major Capital Projects: 1/4 Cent Fire Sales Tax 213,054 1/2 Cent Capital Improvement 28,641 Solid Waste Disposal 278,735 Firehouse Bond Project 8,104 Major Capital Projects: Nonmajor Special Revenue: Firehouse Bond Project 240,699 Sewer Lateral 16,351 Nonmajor Special Revenue: Special Business District 7,803 Sewer Lateral 90,000 Nonmajor Debt Service: Forfeiture 789 Firehouse Bond 202,185
$ 1,271,227 $ 1,271,227
During the year, transfers in the amount of $402,800 were made from the Park and Storm Fund to the Debt Service Fund for principal and interest payments on the general obligation bonds.
6. RETIREMENT PLANS
The City maintains three retirement plans for its employees: The Policemen’s and Firemen’s Retirement Fund, LAGERS, and a deferred compensation plan. The aggregate employer recognized pension expense for the year ended June 30, 2018 was $906,432.
Policemen’s and Firemen’s Retirement Fund (Pension Trust Fund)
Plan Description
The plan is a single employer defined benefit pension plan covering retired police officers and firefighters of the City. The plan provides for pension, death and disability benefits and is subject to the provisions of the Public Employee Retirement System (PERS). PERS is the administrative agent of this single-employer pension plan that was established by the City in accordance with the City Charter and state statutes.
Effective January 1, 2011, all active police officers and firefighters were transferred out of the plan and into the Missouri Local Government Employees Retirement System and are no longer eligible. Benefits for continuing employees will be the responsibility of LAGERS and the transfers will not directly affect the funding for this pension plan, although monies from this plan may be transferred to LAGERS as LAGERS contributions become due.
At June 30, 2018, the plan covered 22 retirees and beneficiaries and 0 active employees.
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Notes to Basic Financial Statements (continued)
The plan is governed by a five member pension board of trustees, which includes the City Manager. The Board of Trustees shall make the final determination of eligibility for all benefit payments based upon the adequacy of reserves in the fund. Administrative costs are borne by the plan.
Upon retirement, a participant receives 2 percent of base pay for each year of service up to a maximum of 60 percent of their base pay. In order to be eligible for retirement, a participant must complete twenty years of service.
If a participant becomes permanently and totally disabled while performing active duty, the participant will receive disability benefits of 60 percent of base pay. If the disability is non-duty related, the participant will receive disability benefits of 40 percent of base pay.
A participant who terminates employment for reasons other than retirement, death or disability, shall receive a refund of their contributions made to the plan without interest.
The plan does not issue separate financial statements.
Funding Policy
The funding policy of the plan for the year ended June 30, 2018, provides that tax revenues from a levy per $100 of assessed valuation be contributed to the plan and that active members contribute 7 percent of base salary. To measure the adequacy of that basis of funding, tax revenues and employee contributions are compared to contribution requirements determined using the entry age normal actuarial cost method. The total unfunded actuarial liability is amortized using straight line level dollar amortization of gains and losses in expense varies by source: increased cost due to plan amendments are recognized immediately; asset gains and losses are recognized over 5 years; liability and assumption changes are recognized over future working years (including inactives at 1 year). At June 30, 2018, the City has no covered payroll and no new hires are assumed for the valuation. Fully funded target date is June 30, 2029.
Net Pension (Asset) Liability
The City’s net pension (asset) liability was measured as of June 30, 2017, and the total pension liability used to calculate the net pension (asset) liability was determined by an actuarial valuation as of July 1, 2018.
Actuarial Assumptions
The Actuarial Cost Method used was Entry Age Normal. The Asset Valuation Method used was Market Value of Assets. Inflation was assumed to be 4 percent. No covered employees reported as of June 30, 2018, and no new hires were assumed. The Investment Rate of Return was assumed to be 7 percent net of fund management fees and trustee’s fees. For June 30, 2019, the investment rate of return was lowered to 6.5 percent. For mortality, the RP-2014 Blue Collar Mortality table with generational projection using Scale MP-2017 for all except disabled retirees. The RP-2014 Disabled Mortality Table with generational projection using Scale MP-2017 for disabled retirees.
The Plan does not provide post retirement benefit increases, such as cost of living adjustments.
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Notes to Basic Financial Statements (continued)
Changes in Net Pension (Asset) Liability
Net Pension Total Pension Plan Fiduciary Liability Liability (A) Net Position (B) (A) - (B)
Balances at June 30, 2017 $ 6,741,053 $ 13,198,521 $ (6,457,468) Changes for the year: Service Cost - - - Interest Cost 450,606 - 450,606 Plan Changes - - - Changes of Assumptions - - - Differences Between Expected and Actual Experience of the Total Pension Liability (220,094) - (220,094) Contributions - City - (99,792) 99,792 Contributions - Employees - - - Net Investment Income - 1,033,901 (1,033,901) Benefit Payments, Including Refunds of Employee Contributions (607,658) (607,658) - Other - (9,839) 9,839 Net Changes (377,146) 316,612 (693,758)
Balances at June 30, 2018 $ 6,363,907 $ 13,515,133 $ (7,151,226)
The plan fiduciary net position as of June 30, 2018, (measurement date of June 30, 2017) was 212.4 percent of the total pension liability. There was no covered employee payroll.
Sensitivity of the Net Pension (Asset) Liability to Changes in the Discount Rate
The following presents the plan’s net pension (asset) liability, calculated using a Single Discount Rate of 7 percent, as well as what the plan’s net pension (asset) liability would be if it were calculated using a Single Discount Rate that is 1 percent lower or 1 percent higher:
Current 1% Decrease Discount Rate 1% Increase (6%) (7%) (8%) Net Pension (Asset) Liability$ (6,582,410) $ (7,151,226) $ (7,639,793)
Investments
The Plan’s equity target is 50 percent (made up of 40 percent US equities and 10 percent international equities). The fixed income target is 48 percent (made up of intermediate government/credit bonds). There is also a 2 percent cash target.
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Notes to Basic Financial Statements (continued)
The capital market return assumptions/projections for each asset class annualized in the next 10+ years:
US Large Cap Equity: 8.15% US Small Cap Equity: 9.10% International Equity: 8.70% Intermediate Core Fixed Income: 2.60%
Rate of Return
For the year ended June 30, 2018, the rate of return on pension plan investments, net of pension plan investment expense was 9.55 percent.
Pension (Income) Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
For the year ended June 30, 2018, the City recognized government-wide pension income of $475,817. At June 30, 2018, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Deferred Outflows of Inflows of Deferred Amounts Related to Pensions Resources Resources Deferred Amounts to be Recognized in Pension Expense in Future Periods: Differences between expected and actual experience$ - $ - Changes of assumptions - - Net difference between projected and actual earnings on pension plan investments 755,938 - Total Deferred Amounts to be Recognized in Pension Expense in Future Periods 755,938 - Pension Contributions Made Subsequent to the Measurement Date - 394,345 Total Deferred Amounts Related to Pensions$ 755,938 $ 394,345
$394,345 reported as deferred inflows of resources in the government-wide financial statements related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension asset in the reporting year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:
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Notes to Basic Financial Statements (continued)
Net Deferred Year Ending Outflows (Inflows) of June 30, Resources 2019$ 182,622 2020 359,447 2021 240,891 2022 (27,022) 2023 - Thereafter - Total$ 755,938
Missouri Local Government Employees Retirement System (LAGERS)
Plan Description
The City participates in the Missouri Local Government Employees Retirement System (LAGERS) which provides certain retirement, disability and death benefits to plan members and beneficiaries. LAGERS is an agent multiple-employer, statewide public employee pension plan established in 1967 and administered in accordance with RSMo. 70.600-70.755. As such, it is LAGERS responsibility to administer the law in accordance with the expressed intent of the General Assembly. The plan is qualified under the Internal Revenue Code Section 401(a) and is tax exempt. The responsibility for the operations and administration of LAGERS is vested in the LAGERS Board of Trustees consisting of seven persons. LAGERS issues a publicly available financial report that includes financial statements and required supplementary information. This report may be obtained by accessing the LAGERS website at www.molagers.org.
Benefits Provided
LAGERS provides retirement, death and disability benefits. Benefit provisions are adopted by the governing body of the employer, within the options available in the state statutes governing LAGERS. All benefits vest after 5 years of credited service. Employees who retire on or after age 60 (55 for police and fire) with 5 or more years of service are entitled to an allowance for life based upon the benefit program information provided below. Employees may retire with an early retirement benefit with a minimum of 5 years of credited service and after attaining age 55 (50 for police and fire) and receive a reduced allowance.
2018 Valuation Benefit Multiplier: 2.00% Final Average Salary: 3 Years Member Contributions: 4%
Benefit terms provide for annual post retirement adjustments to each member’s retirement allowance subsequent to the member’s retirement date. The annual adjustment is based on the increase in the Consumer Price Index and is limited to 4 percent per year.
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Notes to Basic Financial Statements (continued)
Employees Covered By Benefit Terms
At June 30, 2018, the following employees were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 25 Inactive employees entitled to but not yet receiving benefits 18 Active employees 73 116
Contributions
The employer is required to contribute amounts at least equal to the actuarially determined rate, as established by LAGERS. The actuarially determined rate is the estimated amount necessary to finance the cost of benefits earned by employees during the year, with an additional amount to finance an unfunded accrued liability. Full-time employees of the employer contribute 4 percent of their gross pay to the pension plan. Employer contribution rates are 11.0 percent (General), 23.3 percent (Police) and 30.5 percent (Fire) of annual covered payroll.
Net Pension Liability
The employer’s net pension liability was measured as of June 30, 2018, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of February 28, 2018.
Actuarial Assumptions
The total pension liability in the February 28, 2018, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:
Inflation 3.25 percent wage inflation; 2.50 percent price inflation Salary Increase 3.25 percent to 6.55 percent including inflation for General and Police; 3.25 percent to 7.15 percent including inflation for Fire Investment rate of return 7.25 percent
The healthy retiree mortality tables, for post-retirement mortality, were the RP-2014 Healthy Annuitant mortality table for males and females. The disabled retiree mortality tables, for post- retirement mortality, were the RP-2014 disabled mortality table for males and females. The pre- retirement mortality tables used were the RP-2014 employees mortality table for males and females.
Both the post-retirement and pre-retirement tables were adjusted for mortality improvement back to the observation period base year of 2006. The base year for males was then established to be 2017. Mortality rates for a particular calendar year are determined by applying the MP-2015 mortality improvement scale to the above described tables.
The actuarial assumptions used in the February 28, 2018, valuation were based on the results of an actuarial experience study for the period March 1, 2010, through February 28, 2015.
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Notes to Basic Financial Statements (continued)
The long-term expected rate of return on pension plan investments was determined using a model method in which the best-estimate ranges of expected future real rates of return (expected returns, net of investment expenses and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:
Target Long-Term Expected Asset Class Allocation Real Rate of Return Equity 43.00% 5.16% Fixed Income 26.00% 2.86% Real Assets 21.00% 3.23% Strategic Assets 10.00% 5.59%
Discount Rate
The discount rate used to measure the total pension liability is 7.25 percent. The projection of cash flows used to determine the discount rate assumes that employer and employee contributions will be made at the rates agreed upon for employees and the actuarially determined rates for employers. Based on these assumptions, the pension plan’s fiduciary net position was projected to be available to pay all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payment to determine the total pension liability.
Changes in Net Pension Liability
Total Pension Plan Fiduciary Net Pension Liability (A) Net Position (B) Liability (A) - (B) Balances at June 30, 2017 $ 24,073,297 $ 15,359,262 $ 8,714,035 Changes for the year: Service cost 847,033 - 847,033 Interest cost 1,750,737 - 1,750,737 Changes of assumptions - - - Differences between expected and actual experience 919,507 - 919,507 Contributions - city - 1,234,717 (1,234,717) Contributions - employees - 229,839 (229,839) Net investment income - 1,865,130 (1,865,130) Benefit payments, including refunds (694,767) (694,767) - Administrative expense - (9,307) 9,307 Other (net transfer) - 16,967 (16,967) Net changes 2,822,510 2,642,579 179,931
Balances at June 30, 2018 $ 26,895,807 $ 18,001,841 $ 8,893,966
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Notes to Basic Financial Statements (continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the Net Pension Liability of the employer, calculated using the discount rate of 7.25 percent, as well as what the employer’s Net Pension Liability would be using a discount rate that is 1 percentage point lower (6.25 percent) or one percentage point higher (8.25 percent) than the current rate.
Current Single 1% Decrease Discount Rate 1% Increase (6.25%) (7.25%) (8.25%) Net Pension Liability$ 13,660,367 $ 8,893,966 $ 5,043,702
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
For the year ended June 30, 2018, the City recognized government-wide pension expense of $1,382,249. The employer reported deferred outflows and inflows of resources related to pensions from the following sources:
Deferred Deferred Outflows of Inflows of Deferred Amounts Related to Pensions Resources Resources Deferred Amounts to be Recognized in Pension Expense in Future Periods: Differences between expected and actual experience$ 972,146 $ - Changes of assumptions 468,365 - Net difference between projected and actual earnings on pension plan investments - 584,976
Total Deferred Amounts to be Recognized in Pension Expense in Future Periods 1,440,511 584,976
Pension Contributions Made Subsequent to the Measurement Date - -
Total Deferred Amounts Related to Pensions$ 1,440,511 $ 584,976
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Notes to Basic Financial Statements (continued)
Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows:
Net Deferred Year Ending Outflows of June 30, Resources 2019$ 163,215 2020 63,918 2021 (142,537) 2022 14,893 2023 147,860 Thereafter 608,186 Total$ 855,535
Deferred Compensation Plan
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency.
The City funds all amounts of compensation deferred under the plan, at the direction of the covered employee, through investments in the International City Manager Association (ICMA) Retirement Corporation. It is the opinion of the City’s legal counsel that the City has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor.
The plan assets are required to be held in trust for the exclusive benefit of plan participants and their beneficiaries. The City does not report the deferred compensation plan assets and liabilities on its combined balance sheet and the City does not have significant administrative involvement with the plan, nor does the City perform the investing function for the plan.
7. OPERATING LEASES
The City has four monthly operating leases for certain office equipment. Payments related to these leases for the year ended June 30, 2018, totaled $7,229. Future minimum payments are as follows:
Year Ending June 30, Amount
2019$ 7,229 2020 5,421 Total$ 12,650
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Notes to Basic Financial Statements (continued)
8. INSURANCE PROGRAMS
Significant losses are covered by participation in three public entity risk pools described below. For insured programs, there have been no significant reductions in insurance coverage. Settlement amounts did not exceed insurance coverage for the three years ended June 30, 2018.
In August 1986, the City joined an association of St. Louis County municipalities called St. Louis Area Insurance Trust (“SLAIT”). SLAIT administers an insurance plan which provides coverage for workers’ compensation insurance for the municipalities. The premiums paid to SLAIT by the municipalities are used to form a reserve for paying claims. This reserve insures the City for workers’ compensation claims up to $1,000,000 and provides reinsurance for claims between $1,000,000 and $5,000,000. The City’s premium payment was $195,680 for the year ended June 30, 2018.
SLAIT also administers an insurance plan which provides $2,000,000 of general liability and automobile liability coverage for the municipalities. The premiums paid to SLAIT are used to form a reserve for paying claims. The City’s premium payment was $78,208 for the year ended June 30, 2018.
Effective July 1, 2009, the City also participates in a health insurance program for municipalities that is administered by SLAIT. The premiums paid to SLAIT are used to form a reserve for paying claims. The City’s premium payments totaled $1,033,764 for the year ended June 30, 2018.
9. COMMUNICATIONS - JOINT VENTURE
Dispatching services for the fire and police departments are provided by the East Central Dispatching Center, a consortium created by adjacent cities. The fee paid by each city is based primarily on the number of calls for service (911) attributed to each city.
The administration of the joint dispatching venture is overseen by a Board of Directors, comprised of the City Manager or City Administration, from each of the participating municipalities. This joint venture was developed in order to share operating costs thereby saving overall expenses incurred by each participating municipality. In addition, the joint effort is expected to improve equipment and increase the likelihood of obtaining grant funds.
This joint venture has not currently enhanced or hindered the City’s financial operations. During the year end of June 30, 2018, the City paid $300,968 to the East Central Dispatching Center for dispatching services. The City remains liable for their representative share of current and potential liabilities. A separately issued financial report can be obtained for this entity at the City’s finance department.
10. POST-RETIREMENT HEALTH CARE BENEFITS
Plan Description
The City of Maplewood Other Post-Employment Benefits (“OPEB”) Plan (the “Plan”) provides OPEB for certain eligible employees who retire from the City and their dependents. The Plan is a single- employer defined benefit OPEB plan that is administered by the City. The benefits and benefit levels
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Notes to Basic Financial Statements (continued)
are governed by City policy. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75, “Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions.” The Plan does not issue a stand-alone financial report.
Benefits Provided
Plan (the “Plan”) provides an opportunity for continuation of medical and dental insurance benefits to eligible retirees and their dependents. In order to be eligible, retirees must be eligible for normal or early retirement. General employees are eligible for normal retirement at age 60 with 5 years of service or early retirement at age 55 with 5 years of service. Police and fire employees are eligible for normal retirement at age 55 with 5 years of service or early retirement at age 50 with 5 years of service. Retirees who elect to participate must pay 100 percent of the required premium in effect for the current plan year or any subsequent year at the premium rates in effect at that time.
Since the retirees pay a premium for each year, the City’s share of any premium cost is determined on the basis of a blended rate or implicit rate subsidy calculation.
Retiree medical contributions effective for July 1, 2018 are as follows:
Coverage Tier Medical
Individual $622.34 Individual + Spouse $1,369.15 Individual + Child $1,057.99 Family $1,680.31
Employees Covered by Benefit Terms
At June 30, 2018, the following employees were covered by the benefit terms:
Actives 78 Retirees and surviving spouses (with medical) 2 Spouses of current retirees (with medical) 1 Total 81
Total OPEB Liability
The City’s total liability of $523,768 was measured as of June 30, 2018 and was determined by an actuarial valuation as of that date.
Actuarial Assumptions and Other Inputs
The total OPEB liability in the June 30, 2018 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement:
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Notes to Basic Financial Statements (continued)
Inflation 2.30% Salary increases 3.00% Discount rate 3.87% Healthcare cost trend rates Medical cost trend rate of 5.9% for 2018, gradually decreasing to an ultimate rate of 4.0% for 2091 and beyond. Actuarial cost method Entry age normal based. Amortization method N/A
The discount rate was based on the index rate for 20-year tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher.
Mortality rates were based on the RP-2014 Mortality for Employees and Healthy Annuitants, with generational projection per Scale MP-2017.
Changes in the Total OPEB Liability
Total OPEB Liability Total OPEB Liability at June 30, 2017$ 502,250 Change for the year: Service cost 31,833 Interest cots 18,873 Changes in assumptions or other inputs (15,206) Benefit payments (13,982) Net change in total OPEB liability 21,518 Total OPEB Liability at June 30, 2018$ 523,768
Impact of Changes of Benefit Terms
There were no changes of benefit terms that significantly impacted the valuation.
Impact of Plan Experience
The Plan has not had a formal actuarial experience study performed.
Impact of Changes of Assumptions
The impact of changes in assumptions is valued at a loss of $15,206 in respect to the total OPEB liability. This occurred due to many assumptions changing, such as a re-evaluation of the discount rate using the current updated mortality table – reflecting participants living longer and actuarial cost method. The remainder of the changes are due to accrual of benefits and the passage of time.
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability of the City, calculated using the discount rate of 3.87%, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.87%) or 1-percentage-point higher (4.87%) than the current discount rate:
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Notes to Basic Financial Statements (continued)
Current 1% Decrease Discount Rate 1% Increase (2.87%) (3.87%) (4.87%) Total OPEB liability$ 577,889 $ 523,768 $ 474,403
Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates
The following presents the total OPEB liability of the City, calculated using the current healthcare cost trend rates as well as what the City’s total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates:
Current 1% Decrease Trend 1% Increase Total OPEB liability$ 456,670 $ 523,768 $ 603,987
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended June 30, 2018, the City recognized OPEB expense of $49,278. At June 30, 2018, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Outflows Deferred Inflows of Resources of Resources
Differences between expected and actual experience $ - $ - Changes of assumptions/inputs - (13,778) Total $ - $ (13,778)
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense in future periods as follows:
Net Deferred Year Ending Outflows and Inflows June 30, of Resources
2019 $ (1,428) 2020 (1,428) 2021 (1,428) 2022 (1,428) 2023 (1,428) Thereafter (6,638) $ (13,778)
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Notes to Basic Financial Statements (continued)
11. ENCUMBRANCES
The following encumbrances were outstanding as of June 30, 2018:
Fund Amount
General$ 1,683 Major Capital Projects Fund: 1/2 Cent Capital Improvement 54,062 Aggregate Nonmajor Funds 2,385
Total $ 58,130
12. DEFICIT FUND BALANCE
The Solid Waste Disposal, Firehouse Bond Project and Sewer Lateral Funds report a negative unassigned fund balance. The negative fund balance is due to expenses in excess of revenues. Revenues and transfers received in fiscal year 2019 are expected to eliminate the deficit.
13. CONDUIT DEBT
As of June 30, 2018, the City has authorized $8,200,000 of taxable industrial revenue bonds (Tech Electronics Properties, LLC Project), Series 2017, for the purpose of providing funds to pay the costs of acquiring, constructing and improving a facility for an industrial development project in the City; approving a plan for the project; and authorizing the City to enter into certain agreements and take certain other actions in connection with the issuance of the bonds. These bonds are secured by the property financed and are payable solely by the company. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private-sector entity served by the bond issuance. Neither the City, the State of Missouri, nor any political subdivision thereof are obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements.
As of June 30, 2018, $2,164,664 has been issued and is outstanding.
14. CONTINGENCY
The City is potentially liable for tax distribution deficits for tax increment financing districts that are now closed. The deficits are primarily the result of prior year State Tax Commission orders relatively recently processed. The orders are to reduce the assessment on specific parcels for particular tax years on which appeals were filed. No provision has been made in the accompanying financial statements for the liability as it is still being investigated by legal counsel and the outcome is not determinable at this time.
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Notes to Basic Financial Statements (continued)
15. TAX ABATEMENTS
As of June 30, 2018, the City is subject to the following tax abatement programs initiated by other governmental entities:
Tax Abatements Real Estate Tax Surcharge Property Tax
Enhanced Enterprise Zones City of Berkley$ - $ 32 $ - City of Hazelwood - 370 - City of Kinloch - 1,337 - Industrial Development Bonds/St. Louis County Chapter 100 City of Bellerieve - 704 - City of Bridgeton - 5 - City of Clayton - 1,631 - City of Eureka - 158 - City of Ferguson - 269 - City of Jennings - 13 - St. Louis County - 7,969 - Urban Redevelopment Corporations City of Brentwood - 319 - City of Edmundson - 703 - City of Ferguson - 46 - City of Hazelwood - 898 - City of Kinloch - 410 - City of Maryland Heights - 37 - City of Overland - 347 - City of Richmond Heights - 386 - City of Rock Hill - 190 - City of Sunset Hills - 9 - City of Wellston - 40 - St. Louis County - 1,140 -
Total $ - $ 17,013 $ -
16. RECENT ACCOUNTING PRONOUNCEMENTS
The accounting principles governing the reported amounts, presentation and related disclosures are subject to change from time to time based on new pronouncements and/or rules issued by various governing bodies. The Governmental Accounting Standards Board (GASB) is responsible for establishing generally accepted accounting principles (GAAP) for state and local governments.
ln November 2016, the GASB approved Statement No. 83, "Certain Asset Retirement Obligations." This Statement addresses the accounting and financial reporting for certain asset retirement obligations (AROs). An ARO is a legally enforceable liability associated with the retirement of a tangible capital asset. A government that has legal obligations to perform future asset retirement activities related to its tangible capital assets should recognize a liability based on the guidance in this Statement. The requirements of this Statement are effective for reporting periods beginning after June 15, 2018.
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Notes to Basic Financial Statements (continued)
In January 2017, the GASB approved Statement No. 84, “Fiduciary Activities.” This Statement establishes criteria for identifying fiduciary activities of all state and local governments. The focus of the criteria is generally on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities. Governments with activities meeting the criteria should present a statement of fiduciary net position and a statement of changes in fiduciary net position. The requirements of this Statement are effective for reporting periods beginning after December 15, 2018.
In June 2017, the GASB approved Statement No. 87, “Leases.” The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This requires recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments' leasing activities. The requirements of this Statement are effective for reporting periods beginning after December 15, 2019.
In March 2018, the GASB approved Statement No. 88, “Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements.” The objective of this Statement is to improve the information that is disclosed in notes to government financial statements related to debt, including direct borrowings and direct placements. It also clarifies which liabilities governments should include when disclosing information related to debt. This Statement requires that additional essential information related to debt be disclosed in notes to financial statements, including unused lines of credit; assets pledged as collateral for the debt; and terms specified in debt agreements related to significant events of default with finance-related consequences, significant termination events with finance-related consequences, and significant subjective acceleration clauses. The requirements of this Statement are effective for reporting periods beginning after June 15, 2018.
In August 2018, the GASB approved Statement No. 90, “Majority Equity Interest an amendment of GASB Statements No. 14 and No. 61.” The objective of this Statement is to improve consistency and comparability of reporting a government’s majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units The requirements of this Statement are effective for reporting periods beginning after December 15, 2018.
The effects of the City’s financial statements as a result of the adoption of these new pronouncements are undetermined.
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Required Supplementary Information
CITY OF MAPLEWOOD, MISSOURI
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCE BUDGET AND ACTUAL - GENERAL FUND (UNAUDITED) FOR THE FISCAL YEAR ENDED JUNE 30, 2018
Variance With Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative)
Revenues: Taxes$ 7,357,000 $ 7,357,000 $ 7,012,739 $ (344,261) Licenses and permits 1,008,000 1,008,000 877,225 (130,775) Intergovernmental 49,000 49,000 50,697 1,697 Charges for services 20,650 20,650 13,857 (6,793) Fines and forfeitures 680,000 680,000 427,232 (252,768) Interest 2,000 2,000 10,669 8,669 Miscellaneous 171,000 171,000 201,068 30,068 Total Revenues 9,287,650 9,287,650 8,593,487 (694,163)
Expenditures: Current: General Government: Legislative 49,208 49,208 41,245 7,963 Executive 1,566,349 1,566,349 1,560,573 5,776 Legal 505,636 505,636 296,544 209,092 Total General Government 2,121,193 2,121,193 1,898,362 222,831 Public Safety: Police 3,814,310 3,814,310 3,619,070 195,240 Fire 1,762,194 1,762,194 1,692,846 69,348 Total Public Safety 5,576,504 5,576,504 5,311,916 264,588 Public Works 1,911,582 1,911,582 1,733,935 177,647 Capital outlay 224,250 224,250 913,199 (688,949) Total Expenditures 9,833,529 9,833,529 9,857,412 (23,883)
Excess of Revenues Over Expenditures (545,879) (545,879) (1,263,925) (718,046)
Other Financing Sources: Proceeds from disposal of capital assets - - 7,500 7,500
Net Change in Fund Balance $ (545,879) $ (545,879) (1,256,425) $ (710,546)
Fund Balance, Beginning 8,203,608
Fund Balance, Ending $ 6,947,183
See accompanying independent auditor’s report and notes to budgetary comparison information - 58 - CITY OF MAPLEWOOD, MISSOURI
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCE BUDGET AND ACTUAL - PARK AND STORM FUND (UNAUDITED) FOR THE FISCAL YEAR ENDED JUNE 30, 2018
Variance With Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative)
Revenues: Taxes$ 1,300,000 $ 1,300,000 $ 1,351,662 $ 51,662 Interest 1,700 1,700 2,406 706 Total Revenues 1,301,700 1,301,700 1,354,068 52,368
Expenditures: Current: Parks and recreation 1,021,769 1,021,769 628,582 393,187 Capital outlay 367,300 367,300 48,057 319,243 Total Expenditures 1,389,069 1,389,069 676,639 712,430
Excess of Revenues Over Expenditures (87,369) (87,369) 677,429 764,798
Other Financing Uses: Transfers out - - (402,800) (402,800)
Net Change in Fund Balance $ (87,369) $ (87,369) 274,629 $ 361,998
Fund Balance, Beginning 1,568,745
Fund Balance, Ending $ 1,843,374
See accompanying independent auditor’s report and notes to budgetary comparison information - 59 - CITY OF MAPLEWOOD, MISSOURI
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCE BUDGET AND ACTUAL - 1/4 CENT FIRE SALES TAX FUND (UNAUDITED) FOR THE FISCAL YEAR ENDED JUNE 30, 2018
Variance With Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative)
Revenues: Taxes$ 650,000 $ 650,000 $ 675,831 $ 25,831 Interest 100 100 2,052 1,952 Total Revenues 650,100 650,100 677,883 27,783
Expenditures: Current: Public safety - Fire 709,590 709,590 709,185 405 Capital outlay 35,600 35,600 6,032 29,568 Total Expenditures 745,190 745,190 715,217 29,973
Net Change in Fund Balance $ (95,090) $ (95,090) (37,334) $ 57,756
Fund Balance, Beginning 399,891
Fund Balance, Ending $ 362,557
See accompanying independent auditor’s report and notes to budgetary comparison information - 60 - CITY OF MAPLEWOOD, MISSOURI
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCE BUDGET AND ACTUAL – SOLID WASTE DISPOSAL FUND (UNAUDITED) FOR THE FISCAL YEAR ENDED JUNE 30, 2018
Variance With Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative)
Revenues: Taxes$ 367,000 $ 367,000 $ 354,542 $ (12,458) Intergovernmental - - 4,000 4,000 Charges for services 26,000 26,000 20,669 (5,331) Interest 250 250 164 (86) Miscellaneous 20,000 20,000 15,650 (4,350) Total Revenues 413,250 413,250 395,025 (18,225)
Expenditures: Current: Sanitation 577,000 577,000 560,681 16,319 Total Expenditures 577,000 577,000 560,681 16,319
Net Change in Fund Balance $ (163,750) $ (163,750) (165,656) $ (1,906)
Fund Balance, Beginning (22,849)
Fund Balance, Ending $ (188,505)
See accompanying independent auditor’s report and notes to budgetary comparison information - 61 - CITY OF MAPLEWOOD, MISSOURI
NOTES TO BUDGETARY COMPARISON INFORMATION FOR THE FISCAL YEAR ENDED JUNE 30, 2018
Budgets and Budgetary Accounting
Budgets are adopted on a modified accrual basis of accounting which is consistent with accounting principles generally accepted in the United States of America. Annual appropriated budgets are adopted for the general, special revenue and capital project funds. Appropriations with outstanding commitments or encumbrances are carried into the following year. Unexpended, unencumbered appropriations lapse at the end of the year.
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
1. The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed operating expenditures, capital expenditures and the means for financing.
2. Public hearings are conducted to obtain comments from all interested parties.
3. The budget is formally adopted on or before the last day of the current fiscal year end.
4. The City Manager is authorized to transfer budgeted amounts within any department. However, any transfers between departments, between funds or any alteration of the total expenditures of any fund must be approved by the City Council.
5. Expenditures may not legally exceed budgeted appropriations at the department level, unless the City Manager first certifies that there is sufficient unencumbered balance to cover the claim or meet the obligation. The legal level of budgetary control is at the fund level.
A budget was not prepared for the Firehouse Bond Project Fund and Proposition P Fund. In addition, a deficit was budgeted in the Solid Waste Disposal Fund, and the Sewer Lateral Fund. Furthermore, actual expenditures exceeded those budgeted in the following funds: General Fund by $23,883, Hanley Road Special Allocation Fund by $176,657, Deer Creek Center Special Allocation Fund by $681,419, and Special Business District Fund by $22,506.
- 62 - CITY OF MAPLEWOOD, MISSOURI
PENSION TRUST FUND - SCHEDULE OF CHANGES IN NET PENSION LIABILITY (UNAUDITED) FOR THE FISCAL YEAR ENDED JUNE 30, 2018
Fiscal Year Ended June 30, 2014 2015 2016 2017 2018
Total Pension Liability Service cost **$ - $ - $ - $ - Interest on the total pension liability ** 459,475 457,538 458,499 450,606 Changes of benefit terms ** - - - - Differences between expected and actual experience ** 130,043 63,284 34,370 (220,094) Changes of assumptions ** - 98,689 - - Benefit payments, including refunds of employee contributions ** (626,390) (607,987) (603,595) (607,658) Net Changes in Total Pension Liability ** (36,872) 11,524 (110,726) (377,146) Total Pension Liability - Beginning ** 6,877,127 6,840,255 6,851,779 6,741,053 Total Pension Liability - Ending (A) $ 6,877,127 $ 6,840,255 $ 6,851,779 $ 6,741,053 $ 6,363,907
Plan Fiduciary Net Position Contributions - employer **$ (221,390) $ (234,222) $ (88,402) $ (99,792) Contributions - member ** - - - - Net investment income ** 1,817,029 407,450 (365,382) 1,033,901 Benefit payments, including refunds of member contributions ** (626,390) (607,987) (603,595) (607,658) Administrative expense ** (9,333) (10,998) (13,999) (9,839) Other (net transfer) ** - - - - Net Change in Plan Fiduciary Net Position ** 959,916 (445,757) (1,071,378) 316,612 Plan Fiduciary Net Position - Beginning ** 13,755,740 14,715,656 14,269,899 13,198,521 Plan Fiduciary Net Position - Ending (B) $ 13,755,740 $ 14,715,656 $ 14,269,899 $ 13,198,521 $ 13,515,133
Net Pension Liability - Ending (A) - (B) $ (6,878,613) $ (7,875,401) $ (7,418,120) $ (6,457,468) $ (7,151,226)
Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 200.02% 215.13% 208.27% 195.79% 212.37%
Covered Payroll $ - $ - $ - $ - $ -
Net Pension Liability as a Percentage of Covered Payroll N/A N/A N/A N/A N/A
Notes to Schedule:
** Information is not available as this represents the first actuarial valuation performed pursuant to GASB Statement No. 67.
This schedule is intended to show information for ten years. Additional years will be displayed as they become available.
See accompanying independent auditor’s report - 63 - CITY OF MAPLEWOOD, MISSOURI
PENSION TRUST FUND - SCHEDULE OF EMPLOYER CONTRIBUTIONS (UNAUDITED) FOR THE FISCAL YEAR ENDED JUNE 30, 2018
The following exhibit is history of contributions to the police and fire employees plan.
Fiscal Year Ended June 30, 2014 2015 2016 2017 2018
Actuarially determined contribution$ (691,445) $ (670,158) $ (591,228) $ (706,664) $ (716,503) Contributions made in relation to the actuarial determined contribution (221,390) (234,222) (88,402) (99,792) (394,345) Contribution deficiency (excess)$ (470,055) $ (435,936) $ (502,826) $ (606,872) $ (322,158)
Covered payroll$ - $ - $ - $ - $ -
Contribution as a percentage of covered payroll N/AN/AN/AN/AN/A
Notes to Schedule: Methods and assumptions used to determine contribution rates for the most recent year include: Valuation date July 1 of each year Actuarial cost method Not applicable Amortization method Not applicable Remaining amortization period Fully funded 6/30/2029 Asset valuation method Market value reduced by employee contributions and tax revenues within the current fiscal year General inflation 2.50% Salary increases Not applicable Investment rate of return 6.50%, net of investment expenses (a decrease from 7.00%) Retirement age Not applicable. There are no active employees. Mortality RP 2014 Blue Collar Mortality table with generational projection using Scale MP-2017 for all except disabled retirees. RP 2014 Disabled Mortality table with generational projection using Scale MP-2017 for disabled retirees.
Other information: This schedule is intended to show information for ten years. Additional years will be displayed as they become available.
Employer contributions represent tax revenues from a levy per $100 of assessed valuation less transfers to the Missouri Local Government Employees Retirement System for active police officers and firefighters.
See accompanying independent auditor’s report - 64 - CITY OF MAPLEWOOD, MISSOURI
PENSION TRUST FUND - SCHEDULE OF INVESTMENT RETURNS (UNAUDITED) FOR THE FISCAL YEAR ENDED JUNE 30, 2018
Fiscal Year Ended June 30, 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Investment return net of all expenses -11.47% 10.88% 18.92% 4.43% 14.39% 13.56% 2.77% -2.08% 7.97% 9.55%
See accompanying independent auditor’s report - 65 - CITY OF MAPLEWOOD, MISSOURI
MISSOURI LOCAL GOVERNMENT EMPLOYEES RETIREMENT SYSTEM (LAGERS) - SCHEDULE OF CHANGES IN NET PENSION LIABILITY (UNAUDITED) FOR THE FISCAL YEAR ENDED JUNE 30, 2018
Fiscal Year Ended June 30, 2015 2016 2017 2018
Total Pension Liability Service cost $ 790,131 $ 809,819 $ 833,923 $ 847,033 Interest on the total pension liability 1,353,217 1,452,116 1,601,181 1,750,737 Changes of benefit terms - - - - Difference between expected and actual experience (369,403) (148,931) 522,521 919,507 Changes of assumptions - 773,426 - - Benefit payments, including refunds of employee contributions (252,197) (592,742) (1,100,571) (694,767) Net Changes in Total Pension Liability 1,521,748 2,293,688 1,857,054 2,822,510 Total Pension Liability - Beginning 18,400,807 19,922,555 22,216,243 24,073,297 Total Pension Liability - Ending (A) $ 19,922,555 $ 22,216,243 $ 24,073,297 $ 26,895,807
Plan Fiduciary Net Position Contributions - employer$ 1,198,315 $ 1,184,277 $ 1,095,524 $ 1,234,717 Contributions - member 210,697 218,548 214,365 229,839 Net investment income 231,616 76,725 1,729,389 1,865,130 Benefit payments, including refunds of member contributions (252,197) (592,742) (1,100,571) (694,767) Administrative expense (9,229) (8,500) (8,936) (9,307) Other (net transfer) 284,202 10,534 348,162 16,967 Net Change in Plan Fiduciary Net Position 1,663,404 888,842 2,277,933 2,642,579 Plan Fiduciary Net Position - Beginning 10,529,083 12,192,487 13,081,329 15,359,262 Plan Fiduciary Net Position - Ending (B) $ 12,192,487 $ 13,081,329 $ 15,359,262 $ 18,001,841
Net Pension Liability - Ending (A) - (B) $ 7,730,068 $ 9,134,914 $ 8,714,035 $ 8,893,966
Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 61.20% 58.88% 63.80% 66.93%
Covered Payroll $ 5,162,926 $ 5,335,971 $ 5,102,974 $ 5,682,420
Net Pension Liability as a Percentage of Covered Payroll 149.72% 171.19% 170.76% 156.52%
Notes to Schedule:
This schedule is intended to show information for ten years. Additional years will be displayed as they become available.
See accompanying independent auditor’s report - 66 - CITY OF MAPLEWOOD, MISSOURI
MISSOURI LOCAL GOVERNMENT EMPLOYEES RETIREMENT SYSTEM (LAGERS) - SCHEDULE OF EMPLOYER CONTRIBUTIONS (UNAUDITED) FOR THE FISCAL YEAR ENDED JUNE 30, 2018
Fiscal Year Ended June 30, 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Actuarially determined contribution$ 4,250 $ 4,456 $ 469,960 $ 998,368 $ 1,132,973 $ 1,174,839 $ 1,213,719 $ 1,184,672 $ 1,094,651 $ 1,300,436
Contributions made in relation to
the actuarial determined contribution 4,250 4,456 468,707 998,369 1,054,097 1,167,388 1,198,794 1,184,672 1,094,651 1,234,718
Contribution deficiency$ - $ - $ 1,253 $ (1) $ 78,876 $ 7,451 $ 14,925 $ - $ - $ 65,718
Covered payroll$ 1,062,560 $ 1,114,043 $ 2,800,480 $ 4,692,045 $ 4,810,350 $ 5,166,474 $ 5,268,963 $ 5,465,024 $ 5,356,222 $ 5,745,997
Contribution as a percentage of covered
payroll 0.40% 0.40% 16.74% 21.28% 21.91% 22.60% 22.75% 21.68% 20.44% 21.49%
Notes to Schedule: Methods and assumptions used to determine contribution rates for the most recent year include: Valuation date February 28/29 of each year; the roll-forward of total pension liability from February 28, 2018, to June 30, 2018, reflects expected service cost and interest reduced by actual benefit payments. Actuarial cost method Entry age normal cost and modified terminal funding Amortization method Level percentage of payroll, closed. Remaining amortization period Multiple bases from 15 to 22 for General and 12 to 22 years for Police and Fire. Asset valuation method 5-year smoothed market; 20% corridor. General inflation 3.25% wage inflation; 2.50% price inflation. Salary increases 3.25% to 6.55% including wage inflation for General and Police; 3.25% to 7.15% including wage inflation for Fire. Investment rate of return 7.25%, net of investment expenses. Retirement age Experience-based table of rates that are specific to the type of eligibility condition. Mortality The healthy retiree mortality tables, for post-retirement mortality, were the RP-2014 Healthy Annuitant mortality table for males and females. The disabled retiree mortality tables, for post-retirement mortality, were the RP-2014 disabled mortality table for males and females. The pre-retirement mortality tables used were the RP-2014 employees mortality table for males and females.
Both the post-retirement and pre-retirement tables were adjusted for mortality improvement back to the observation period base year of 2006. The base year for males was then established to be 2017. Mortality rates for a particular calendar year are determined by applying the MP-2015 mortality improvement scale to the above described tables.
Other information: None.
See accompanying independent auditor’s report - 67 - CITY OF MAPLEWOOD, MISSOURI
OTHER POST-EMPLOYMENT BENEFITS PROGRAM - SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS (UNAUDITED) FOR THE FISCAL YEAR ENDED JUNE 30, 2018
The following required supplementary information relates to the City’s other post-employment benefits program.
Year Ended June 30, 2018 Total OPEB liability Service cost $ 31,833 Interest cost 18,873 Changes in assumptions or other inputs (15,206) Benefit payments (13,982) Net change in total OPEB liability 21,518 Total OPEB Liability at June 30, 2017 502,250 Total OPEB Liability at June 30, 2018$ 523,768
Covered payroll$ 7,417,114 Total OPEB liability as a percentage of covered payroll 7.06%
Note: This schedule is intended to show information for ten years. Additional years will be displayed as they become available.
See accompanying independent auditor’s report - 68 -
Other Supplementary Information - Combining Fund Financial Statements
CITY OF MAPLEWOOD, MISSOURI
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2018
Combined Debt Service Funds Nonmajor Deer Creek Hanley Total Special Center Road Nonmajor Revenue Special Cambridge Special Firehouse Debt Governmental Funds Allocation Commons Allocation Bond Service Funds
Assets: Cash and investments: Held by trustees$ - $ 1,293,227 $ 315,284 $ 846,356 $ - $ - $ 2,454,867 Restricted - - - - 189,601 - 189,601 Unrestricted 399,471 54,696 1,007 25,219 - - 480,393 Receivables: Taxes 46,916 43,649 - 97,611 24,490 - 212,666 Prepaid items 14,154 - - - - - 14,154 Due from other funds 24,154 - - - 202,185 - 226,339 Total Assets $ 484,695 $ 1,391,572 $ 316,291 $ 969,186 $ 416,276 $ - $ 3,578,020
Liabilities: Accounts payable$ 4,472 $ - $ 40,313 $ - $ - $ - $ 44,785 Due to other funds 90,789 - - - - - 90,789 Total Liabilities 95,261 - 40,313 - - - 135,574
Deferred Inflows of Resources: Unavailable revenues - property taxes - - - - 21,500 - 21,500
Fund Balances: Nonspendable: Prepaid items 14,154 - - - - - 14,154 Restricted for: Law enforcement 304,356 - - - - - 304,356 TIF projects and debt obligations - 1,391,572 275,978 969,186 - - 2,636,736 Maplewood business district 101,965 - - - - - 101,965 Debt service - - - - 394,776 - 394,776 Unassigned (31,041) - - - - - (31,041) Total Fund Balances 389,434 1,391,572 275,978 969,186 394,776 - 3,420,946
Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 484,695 $ 1,391,572 $ 316,291 $ 969,186 $ 416,276 $ - $ 3,578,020
- 69 - CITY OF MAPLEWOOD, MISSOURI
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2018
Combined Debt Service Funds Nonmajor Deer Creek Hanley Total Special Center Road Nonmajor Revenue Special Cambridge Special Firehouse Debt Governmental Funds Allocation Commons Allocation Bond Service Funds Revenues: Taxes$ 456,284 $ 1,079,318 $ 93,217 $ 1,097,124 $ 565,354 $ - $ 3,291,297 Licenses and permits 53,846 - - - - - 53,846 Interest 247 8,969 2,983 6,065 - - 18,264 Miscellaneous 25,488 121,336 - - - - 146,824 Total Revenues 535,865 1,209,623 96,200 1,103,189 565,354 - 3,510,231
Expenditures: Current: Sanitation 77,531 - - - - - 77,531 Community development 122,106 9,033 - - - - 131,139 Capital outlay 23,505 - - - - - 23,505 Debt service: Principal retirement - 675,000 24,000 660,000 250,000 365,000 1,974,000 Interest and fiscal charges - 497,386 36,559 416,657 143,400 37,800 1,131,802 Total Expenditures 223,142 1,181,419 60,559 1,076,657 393,400 402,800 3,337,977
Deficiency of Revenues Under Expenditures 312,723 28,204 35,641 26,532 171,954 (402,800) 172,254
Other Financing Sources: Transfers in - - - - - 402,800 402,800
Net Change in Fund Balances 312,723 28,204 35,641 26,532 171,954 - 575,054
Fund Balances, Beginning 76,711 1,363,368 240,337 942,654 222,822 - 2,845,892
Fund Balances, Ending $ 389,434 $ 1,391,572 $ 275,978 $ 969,186 $ 394,776 $ - $ 3,420,946
- 70 - CITY OF MAPLEWOOD, MISSOURI
COMBINING BALANCE SHEET - NONMAJOR SPECIAL REVENUE FUNDS JUNE 30, 2018
Special Sewer Business Proposition Lateral Forfeiture District P Total
Assets: Cash and investments: Held by trustees$ - $ - $ - $ - $ - Restricted - - - - - Unrestricted 44,413 18,664 95,314 241,080 399,471 Receivables: Taxes 1,434 - 81 45,401 46,916 Prepaid items - - 14,154 - 14,154 Due from other funds 16,351 - 7,803 - 24,154
Total Assets $ 62,198 $ 18,664 $ 117,352 $ 286,481 $ 484,695
Liabilities: Accounts payable$ 3,239 $ - $ 1,233 $ - $ 4,472 Due to other funds 90,000 789 - - 90,789
Total Liabilities 93,239 789 1,233 - 95,261
Fund Balances: Nonspendable: Prepaid items - - 14,154 - 14,154 Restricted for: Law enforcement - 17,875 - 286,481 304,356 Maplewood business district - - 101,965 - 101,965 Unassigned (31,041) - - - (31,041)
Total Fund Balances (31,041) 17,875 116,119 286,481 389,434 Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 62,198 $ 18,664 $ 117,352 $ 286,481 $ 484,695
- 71 - CITY OF MAPLEWOOD, MISSOURI
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NONMAJOR SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2018
Special Sewer Business Proposition Lateral Forfeiture District P Total Revenues: Taxes$ 118,427 $ - $ 51,376 $ 286,481 $ 456,284 Licenses and permits - - 53,846 - 53,846 Interest 65 29 153 - 247 Miscellaneous - - 25,488 - 25,488 Total Revenues 118,492 29 130,863 286,481 535,865
Expenditures: Current: Sanitation 77,531 - - - 77,531 Community development - - 122,106 - 122,106 Capital outlay - 2,305 21,200 - 23,505 Total Expenditures 77,531 2,305 143,306 - 223,142
Net Change in Fund Balances 40,961 (2,276) (12,443) 286,481 312,723
Fund Balances, Beginning (72,002) 20,151 128,562 - 76,711
Fund Balances, Ending $ (31,041) $ 17,875 $ 116,119 $ 286,481 $ 389,434
- 72 -
Other Supplementary Information - Budgetary Comparison Information
CITY OF MAPLEWOOD, MISSOURI
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCE BUDGET AND ACTUAL - 1/2 CENT CAPITAL IMPROVEMENT FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2018
Variance With Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative)
Revenues: Taxes$ 1,300,000 $ 1,300,000 $ 1,318,164 $ 18,164 Intergovernmental 400,000 400,000 286,106 (113,894) Interest 1,000 1,000 1,393 393 Miscellaneous - - 723,997 723,997 Total Revenues 1,701,000 1,701,000 2,329,660 628,660
Expenditures: Capital outlay 1,825,937 1,825,937 1,390,805 435,132 Debt Service: Principal retirement 200,500 200,500 251,945 (51,445) Interest and fiscal charges - - 22,190 (22,190) Total Expenditures 2,026,437 2,026,437 1,664,940 361,497
Net Change in Fund Balance $ (325,437) $ (325,437) 664,720 $ 990,157
Fund Balance, Beginning 780,874
Fund Balance, Ending $ 1,445,594
- 73 - CITY OF MAPLEWOOD, MISSOURI
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCE BUDGET AND ACTUAL - SEWER LATERAL FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2018
Variance With Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative)
Revenues: Taxes$ 130,000 $ 130,000 $ 118,427 $ (11,573) Interest 50 50 65 15 Total Revenues 130,050 130,050 118,492 (11,558)
Expenditures: Current: Sanitation 120,000 120,000 77,531 42,469 Total Expenditures 120,000 120,000 77,531 42,469
Net Change in Fund Balance $ 10,050 $ 10,050 40,961 $ 30,911
Fund Balance, Beginning (72,002)
Fund Balance, Ending $ (31,041)
- 74 - CITY OF MAPLEWOOD, MISSOURI
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCE BUDGET AND ACTUAL - FORFEITURE FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2018
Variance With Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative)
Revenues: Intergovernmental$ 50,000 $ 50,000 $ - $ (50,000) Interest - - 29 29 Total Revenues 50,000 50,000 29 (49,971)
Expenditures: Capital outlay 50,000 50,000 2,305 47,695 Total Expenditures 50,000 50,000 2,305 47,695
Net Change in Fund Balance $ - $ - (2,276) $ (2,276)
Fund Balance, Beginning 20,151
Fund Balance, Ending $ 17,875
- 75 - CITY OF MAPLEWOOD, MISSOURI
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCE BUDGET AND ACTUAL – DEER CREEK CENTER SPECIAL ALLOCATION FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2018
Variance With Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative)
Revenues: Taxes$ 800,000 $ 800,000 $ 1,079,318 $ 279,318 Intergovernmental - - - - Charges for services - - - - Interest - - 8,969 8,969 Miscellaneous - - 121,336 121,336 Total Revenues 800,000 800,000 1,209,623 409,623
Expenditures: Current: Community development - - 9,033 (9,033) Debt Service: Principal retirement 500,000 500,000 675,000 (175,000) Interest and fiscal charges - - 497,386 (497,386) Total Expenditures 500,000 500,000 1,181,419 (681,419)
Net Change in Fund Balance $ 300,000 $ 300,000 28,204 $ (271,796)
Fund Balance, Beginning 1,363,368
Fund Balance, Ending $ 1,391,572
- 76 - CITY OF MAPLEWOOD, MISSOURI
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCE BUDGET AND ACTUAL - CAMBRIDGE COMMONS FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2018
Variance With Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative)
Revenues: Taxes$ 120,000 $ 120,000 $ 93,217 $ (26,783) Interest 20 20 2,983 2,963 Total Revenues 120,020 120,020 96,200 (23,820)
Expenditures: Debt service: Principal retirement 120,000 120,000 24,000 96,000 Interest and fiscal charges - - 36,559 (36,559) Total Expenditures 120,000 120,000 60,559 59,441
Net Change in Fund Balance $ 20 $ 20 35,641 $ 35,621
Fund Balance, Beginning 240,337
Fund Balance, Ending $ 275,978
- 77 - CITY OF MAPLEWOOD, MISSOURI
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCE BUDGET AND ACTUAL - SPECIAL BUSINESS DISTRICT FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2018
Variance With Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative)
Revenues: Taxes$ 55,000 $ 55,000 $ 51,376 $ (3,624) Licenses and permits 55,000 55,000 53,846 (1,154) Interest 200 200 153 (47) Miscellaneous - - 25,488 25,488 Total Revenues 110,200 110,200 130,863 20,663
Expenditures: Current: Community development 96,800 96,800 122,106 (25,306) Capital outlay 24,000 24,000 21,200 2,800 Total Expenditures 120,800 120,800 143,306 (22,506)
Net Change in Fund Balance $ (10,600) $ (10,600) (12,443) $ (1,843)
Fund Balance, Beginning 128,562
Fund Balance, Ending $ 116,119
- 78 - CITY OF MAPLEWOOD, MISSOURI
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCE BUDGET AND ACTUAL - HANLEY ROAD SPECIAL ALLOCATION FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2018
Variance With Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative)
Revenues: Taxes$ 895,000 $ 895,000 $ 1,097,124 $ 202,124 Interest 55 55 6,065 6,010 Total Revenues 895,055 895,055 1,103,189 208,134
Expenditures: Debt service: Principal retirement 900,000 900,000 660,000 240,000 Interest and fiscal charges - - 416,657 (416,657) Total Expenditures 900,000 900,000 1,076,657 (176,657)
Net Change in Fund Balance $ (4,945) $ (4,945) 26,532 $ 31,477
Fund Balance, Beginning 942,654
Fund Balance, Ending $ 969,186
- 79 -
Statistical Section City of Maplewood
CITY OF MAPLEWOOD, MISSOURI
Statistical Section
This part of the City of Maplewood's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health.
Contents Page
Financial Trends 80 These pages contain trend information to help the reader understand how the City's financial performance and well-being have changed over time.
Revenue Capacity 85 These pages contain information to help the reader assess the City's most significant local revenue sources.
Debt Capacity 90 These pages present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future.
Demographic and Economic Information 94 These pages offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place.
Operating Information 96 These pages contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs.
Sources: Unless otherwise noted, the information in this section is derived from the comprehensive annual financial reports for the relevant year.
CITY OF MAPLEWOOD, MISSOURI
NET POSITION BY COMPONENT LAST TEN FISCAL YEARS
Fiscal Year Ended June 30, 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Governmental Activities: Net investment in capital assets$ 11,150,894 $ 11,928,274 $ 12,976,780 $ 14,666,957 $ 15,679,636 $ 16,898,395 $ 17,728,625 $ 18,388,510 $ 21,099,780 $ 22,707,520 Restricted for: Capital projects 826,063 842,578 1,084,535 2,294,087 664,701 412,163 1,007,848 1,358,006 963,458 1,485,599 TIF bonds and notes 1,599,433 - 1,951,382 725,813 1,344,026 2,275,789 2,420,894 2,372,675 2,390,177 2,491,478 Park and stormwater - - 227,299 318,919 599,892 876,841 983,037 1,202,501 1,565,700 1,841,211 Solid waste disposal - - 610,148 543,318 511,861 419,838 306,032 201,599 21,665 19,257 Sewer lateral repairs - - 32,741 9,527 5,011 - - - - - Law enforcement - - 351,966 258,910 90,648 36,246 25,033 27,086 20,151 304,356 Maplewood business district - - 647,497 616,366 212,652 181,376 145,555 117,523 108,881 101,965 Fire department - - 16,034 35,490 183,354 287,859 377,920 418,545 399,891 362,557 Debt service ------104,713 196,588 370,527 Unrestricted (6,470,437) (3,133,181) (4,533,497) (2,920,985) (1,079,724) (11,936,642) (10,810,393) (10,647,650) (9,821,076) (10,669,216)
Total Governmental Activities Net Position$ 7,105,953 $ 9,637,671 $ 13,364,885 $ 16,548,402 $ 18,212,057 $ 9,451,865 $ 12,184,551 $ 13,543,508 $ 16,945,215 $ 19,015,254
Note: Fiscal year ended June 30, 2014 was restated during fiscal year 2015 to implement GASB Statements 68 and 71. Source: Basic financial statements
- 80 - CITY OF MAPLEWOOD, MISSOURI
CHANGES IN NET POSITION LAST TEN FISCAL YEARS
Fiscal Year Ended June 30, 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Expenses: Governmental Activities: General government$ 1,699,362 $ 1,832,528 $ 2,572,594 $ 2,884,828 $ 3,999,847 $ 2,092,586 $ 1,923,043 $ 2,284,857 $ 2,174,305 $ 2,120,495 Public safety 4,859,206 5,260,715 5,056,380 5,136,643 5,087,518 5,297,089 5,662,061 5,877,766 5,810,449 6,431,259 Public works 2,281,172 1,746,961 1 ,624,782 1 ,909,661 2 ,107,219 2,566,368 2,819,006 2,713,070 2,693,861 3 ,153,560 Sanitation 456,126 5 25,837 526,171 520,474 457,585 613,155 626,773 580,865 724,108 638,212 Parks and recreation 798,570 887,948 539,762 569,383 595,080 529,718 581,333 589,462 601,333 640,971 Community development 86,403 105,834 634,158 143,423 117,136 8,628,387 143,494 144,057 96,669 152,339 Interest and fiscal charges 1,093,299 1,103,410 1,032,067 931,740 845,397 1,895,220 1,251,511 1,252,201 1,203,780 1,118,649 Total Governmental Activities Expenses 11,274,138 11,463,233 11,985,914 12,096,152 13,209,782 21,622,523 13,007,221 13,442,278 13,304,505 14,255,485 Program Revenues: Governmental Activities: Charges for Services: General government 651,704 770,493 954,265 817,722 866,375 821,256 886,840 963,823 1,047,031 951,803 Public safety 912,107 1,075,830 1,171,343 1,218,642 934,546 1,118,588 884,314 496,332 414,481 427,232 Public works5,568 8,387 14,278 9,820 30,898 12,121 5,708 19,478 9,756 6,203 Parks and recreation 380 500 ------Operating grants and contributions 673,356 604,045 609,711 596,014 503,860 515,775 561,559 555,917 548,481 585,091 Capital grants and contributions 32,000 84,169 6,547 483,153 500,766 220,121 404,803 3,771 1,419,789 145,240 Total Governmental Activities Program Revenues 2,275,115 2,543,424 2,756,144 3,125,351 2,836,445 2,687,861 2,743,224 2,039,321 3,439,538 2,115,569 Net (Expense)/Revenue: Total Governmental Net Expense$ (8,999,023) $ (8,919,809) $ (9,229,770) $ (8,970,801) $ (1 0,373,337) $ (18,934,662) $ (10,263,997) $ (11,402,957) $ (9,864,967) $ (1 2,139,916) General Revenues and Other Changes in Net Position: Governmental Activities: Taxes: Property taxes, levied for general purposes$ 1,185,225 $ 995,573 $ 980,689 $ 880,909 $ 876,708 $ 836,477 $ 937,772 $ 928,933 $ 882,814 $ 844,535 Property taxes, levied for debt service ------470,929 488,622 565,686 Property taxes, levied for tax increment debt1,47 3,719 1,445,661 1,663,635 1,462,522 1,213,960 1,394,382 1,097,386 1,326,846 1,312,192 1,615,863 Property taxes, levied for solid waste 471,118 422,747 446,209 334,981 333,561 383,418 342,384 356,030 351,753 352,133 Property taxes, levied for special business district 40,742 63,472 59,208 62,460 25,053 14,971 48,612 50,868 44,536 51,376 Gross receipts taxes 1,897,190 2,156,477 2,018,399 7,064,540 1,977,660 2,058,967 1,981,008 1,893,322 1,885,093 2,038,962 Sales taxes 6,300,334 6,006,619 6,575,325 1,915,855 6,879,656 7,230,054 7,658,608 7,328,098 7,501,808 7,831,007 Miscellaneous taxes 180,098 1 65,013 193,632 174,191 132,193 156,562 179,533 163,014 193,406 175,856 Investment earnings 126,443 57,552 53,698 26,614 15,579 8,307 10,517 10,953 13,719 34,949 Gain on sale of capital assets - - 3,922 - - 9,316 259 - 38,555 - Other 89,756 1 38,413 166,001 232,746 582,122 466,523 740,604 232,921 554,176 1,088,538 Special item - - 796,266 ------Total Government Activities 11,764,625 11,451,527 12,956,984 12,154,818 12,036,492 12,558,977 12,996,683 12,761,914 13,266,674 14,598,905 Change in Net Position: Total Government Activities$ 2,765,602 $ 2,531,718 $ 3,727,214 $ 3,184,017 $ 1,663,155 $ (6,375,685) $ 2,732,686 $ 1,358,957 $ 3,401,707 $ 2,458,989 Source: Basic financial statements
- 81 - CITY OF MAPLEWOOD, MISSOURI
PROGRAM REVENUES BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS
Fiscal Year Ended June 30, 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Function/Program: Governmental Activities: General government$ 651,704 $ 770,493 $ 954,265 $ 817,722 $ 866,375 $ 821,256 $ 895,995 $ 963,823 $ 1,047,031 $ 951,803 Public safety 1,027,968 1,127,847 1,214,853 1,304,200 959,623 1,145,350 915,543 532,525 437,485 427,232 Public works 554,563 643,084 565,009 995,958 1,007,247 721,255 902,319 542,973 1,951,026 6,203 Sanitation 8,500 1,500 15,470 5,481 - - 29,367 - 3,996 - Parks and recreation 32,380 500 6,547 1,990 3,200 - - - - - Community development ------
Total Governmental Activities$ 2,275,115 $ 2,543,424 $ 2,756,144 $ 3,125,351 $ 2,836,445 $ 2,687,861 $ 2,743,224 $ 2,039,321 $ 3,439,538 $ 1,385,238
Source: Basic financial statements
- 82 - CITY OF MAPLEWOOD, MISSOURI
FUND BALANCES – GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS
Fiscal Year Ended June 30, 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
General Fund: Nonspendable$ - $ - $ 70,314 $ 74,203 $ 78,083 $ 77,427 $ 91,579 $ 105,069 $ 154,341 $ 159,241 Restricted - - 3,017 ------Committed - - 138,217 148,694 151,324 157,409 156,669 162,156 162,197 172,086 Assigned - - 93,185 305,891 239,618 537,170 690,681 697,840 566,907 494,724 Unassigned - - 8,322,294 8,476,586 8,876,622 8,858,573 8,504,409 7,490,396 7,320,163 6,121,132 Reserved 256,374 174,954 ------Unreserved 6,419,190 7,699,435 ------
Total General Fund$ 6,675,564 $ 7,874,389 $ 8,627,027 $ 9,005,374 $ 9,345,647 $ 9,630,579 $ 9,443,338 $ 8,455,461 $ 8,203,608 $ 6,947,183
All Other Governmental Funds: Nonspendable$ - $ - $ - $ - $ - $ 2,467 $ 1,220 $ 4,678 $ 19,681 $ 14,154 Restricted - - 5,038,617 4,912,186 3,615,581 4,262,983 10,689,668 10,959,136 7,285,001 7,089,358 Committed ------Assigned ------Unassigned ------(44,538) (37,313) (94,851) (31,041) Reserved 245,364 229,512 ------Unreserved, reported in: Capital projects funds - (118,393) ------Special revenue funds 4,326,905 4,413,403 ------
Total All Other Governmental Funds$ 4,572,269 $ 4,524,522 $ 5,038,617 $ 4,912,186 $ 3,615,581 $ 4,265,450 $ 10,646,350 $ 10,926,501 $ 7,209,831 $ 7,072,471
Note: GASB Statement 54 was implemented during the fiscal year ended June 30, 2011. Source: Basic financial statements
- 83 - CITY OF MAPLEWOOD, MISSOURI
CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Revenues: Taxes $ 12,018,880 $ 11,770,651 $ 12,426,720 $ 12,360,167 $ 11,900,587 $ 12,524,447 $ 12,734,348 $ 12,991,872 $ 13,147,594 $ 14,004,235 Licenses and permits 660,505 781,383 963,642 842,488 849,663 832,948 884,263 965,892 1,046,469 931,071 Intergovernmental 261,591 137,686 171,869 677,653 438,231 104,636 147,069 65,969 1,800,491 340,803 Charges for services 166,263 227,967 71,960 62,702 79,898 51,431 43,346 54,105 39,802 34,526 Fines and forfeitures 694,883 907,571 1,061,574 1,073,181 934,386 1,075,639 876,654 466,555 413,992 427,232 Interest 126,443 57,553 53,699 26,614 15,579 8,306 10,518 10,953 13,719 34,948 Miscellaneous 97,255 132,819 155,368 257,751 558,102 520,455 729,502 226,421 553,676 1,087,539 Total Revenues 14,025,820 14,015,630 14,904,832 15,300,556 14,776,446 15,117,862 15,425,700 14,781,767 17,015,743 16,860,354 Expenditures: Current: General government 1,541,032 1,722,679 1,852,543 2,050,099 3,279,321 1,866,867 1,827,212 1,873,671 1,916,001 1,898,362 Public safety 4,524,626 4,863,493 4,960,986 5,224,471 5,341,122 5,589,064 5,989,491 5,920,166 5,868,246 6,074,892 Public works 1,320,842 1,331,790 1,410,771 1,466,913 1,579,932 1,651,869 1,745,827 1,728,764 1,687,885 1,733,935 Sanitation 456,126 525,837 526,171 520,474 457,585 613,155 626,773 580,865 724,108 638,212 Parks and recreation 524,985 554,392 500,437 519,038 487,829 521,071 579,851 574,516 574,095 628,582 Community development 47,762 89,620 594,278 92,100 95,665 8,579,281 98,963 109,841 89,183 131,139 Capital outlay 3,392,317 1,401,666 1,739,060 2,952,882 2,006,342 2,127,047 2,054,217 1,584,707 7,719,601 4,204,335 Debt service: Principal 2,016,593 1,270,777 1,571,226 1,465,825 1,620,566 1,845,222 1,210,634 1,836,966 1,884,621 2,225,945 Interest 1,100,630 1,104,298 1,012,661 945,588 864,416 1,839,381 1,268,661 1,279,997 1,228,221 1,153,992 Total Expenditures 14,924,913 12,864,552 14,168,133 15,237,390 15,732,778 24,632,957 15,401,629 15,489,493 21,691,961 18,689,394 Excess of revenues over (under) expenditures (899,093) 1,151,078 736,699 63,166 (956,332) (9,515,095) 24,071 (707,726) (4,676,218) (1,829,040) Other Financing Sources (Uses): Issuance of debt- - 519,000 - - 13,305,000 6,000,000 - - - Proceeds from sale of capital assets - - 11,034 13,000 - 29,370 - - 62,000 7,500 Capital lease 1,700,000 ------Bond Premium - - - - - 148,233 169,588 - - - Bond Discount - - - - - (81,875) - - - - Payment to Refunding Agent - - - - - (2,950,832) - - - - Proceeds from lease purchase agreement ------645,695 - Transfers from other funds 436,951 435,953 572,414 435,370 1,555,698 405,383 403,700 403,650 398,300 402,800 Transfers to other funds (436,951) (435,953) (572,414) (435,370) (1,555,698) (405,383) (403,700) (403,650) (398,300) (402,800) Total Other Financing Sources (Uses) 1,700,000 - 530,034 13,000 - 10,449,896 6,169,588 - 707,695 7,500 Net Change In Fund Balances$ 800,907 $ 1,151,078 $ 1,266,733 $ 76,166 $ (956,332) $ 934,801 $ 6,193,659 $ (707,726) $ (3,968,523) $ (1,821,540) Debt service as a percentage of noncapital expenditures 25.2% 20.3% 20.4% 18.7% 17.5% 16.3% 18.2% 22.1% 22.0% 22.5% Source: Basic financial statements
- 84 - CITY OF MAPLEWOOD, MISSOURI
TAX REVENUE BY SOURCE, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accounting)
Fiscal TIF Gasoline and Road and Financial Year Property Sales and Use Gross Receipts Revenue Motor Fuel Bridge Cigarette Franchise Institution Total
2009$ 1,740,417 $ 5,726,274 $ 1,897,190 $ 2,047,779 $ 306,107 $ 168,092 $ 66,599 $ 66,422 $ - $ 12,018,880 2010 1,571,718 5,461,376 2,156,477 1,990,904 307,536 169,350 66,599 46,691 - 11,770,651 2011 1,549,072 5,884,229 2,018,399 2,354,731 313,448 162,558 66,599 77,452 232 12,426,720 2012 1,364,636 6,380,940 1,915,855 2,146,122 271,569 153,486 66,600 60,854 105 12,360,167 2013 1,294,227 6,240,145 1,977,660 1,853,471 253,666 153,265 66,600 59,228 2,325 11,900,587 2014 1,303,000 6,589,426 2,058,967 2,095,211 205,210 156,323 66,600 47,055 2,656 12,524,447 2015 1,429,179 7,020,507 1,981,007 1,800,014 210,267 160,558 66,600 65,976 240 12,734,348 2016 1,875,950 7,328,098 1,893,322 1,326,846 283,017 170,104 66,599 45,139 2,797 12,991,872 2017 1,767,725 7,501,808 1,885,093 1,312,192 288,466 167,881 66,599 75,280 6,278 13,071,322 2018 1,933,283 7,177,210 2,038,962 2,269,659 289,964 170,970 66,599 55,411 2,177 14,004,235
Change 2009-2018 11% 25% 7% 11% -5% 2% 0% -17% 100% 17%
- 85 - CITY OF MAPLEWOOD, MISSOURI
ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS
Local RR & Assessed Residential Real Commercial Real Utility State RR & Total Real Personal Total Estimated Value as a Fiscal Year Property Property Assessed Utility Property Property Total Taxable Direct Actual Taxable Percentage of Ended June 30, Assessed Value Assessed Value Value Assessed Value Assessed Value Assessed Value Assessed Value Tax Rate Value Actual Value
2009$ 83,006,240 $ 70,406,880 $ - $ 1,593,101 $ 155,006,221 $ 22,533,512 $ 177,539,733 1.0670$ 730,158,258 24.315 2010 78,344,250 68,927,580 - 1,710,035 148,981,865 21,519,219 170,501,084 1.0013 698,290,459 24.417 2011 78,290,210 68,557,640 - 1,839,558 148,687,408 19,135,042 167,822,450 0.9863 690,029,956 24.321 2012 73,714,640 64,872,160 - 2,058,805 140,645,605 18,444,569 159,090,174 0.7910 653,023,688 24.362 2013 72,032,360 64,936,590 - 2,019,277 138,988,227 18,184,804 157,173,031 0.7750 643,460,235 24.426 2014 71,490,240 64,358,750 - 2,120,120 137,969,110 17,062,440 155,031,550 0.7650 635,715,253 24.387 2015 71,410,730 66,233,570 - 2,167,351 139,811,651 20,736,591 160,548,242 0.7640 652,436,980 24.607 2016 75,764,630 72,917,610 - 2,380,450 151,062,690 19,926,390 170,989,080 0.9960 694,450,648 24.622 2017 75,431,700 72,685,760 - 2,251,070 150,368,530 20,450,075 170,818,605 1.0000 693,156,465 24.644 2018 82,283,970 67,276,470 - 2,043,456 151,603,896 20,871,973 172,475,869 0.9550 712,946,698 24.192
Source: St. Louis County Assessor's Office
Note: St. Louis County Assessed property at approximately 23 percent of actual value for real property and 33 percent for personal property. Estimated actual value is calculated by dividing assessed value by those percentages. Tax rates are per $100 of assessed value.
- 86 - CITY OF MAPLEWOOD, MISSOURI
DIRECT AND OVERLAPPING PROPERTY TAX RATES (RATE FOR $100 OF ASSESSED VALUE) LAST TEN FISCAL YEARS
Fiscal Year Ended June 30, 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
City of Maplewood Direct Rates: Operating $ 0.4610 $ 0.4183 $ 0.3959 $ 0.2460 $ 0.2230 $ 0.2140 $ 0.2100 $ 0.1820 $ 0.1830 $ 0.1700 Special projects capital improvement 0.1780 0.1670 0.1696 0.1530 0.1600 0.1600 0.1620 0.1540 0.1550 0.1460 Pension 0.4280 0.4160 0.4208 0.3920 0.3920 0.3910 0.3920 0.3800 0.3820 0.3590 Debt Service ------0.2800 0.2800 0.2800
Total Direct Rate $ 1.0670 $ 1.0013 $ 0.9863 $ 0.7910 $ 0.7750 $ 0.7650 $ 0.7640 $ 0.9960 $ 1.0000 $ 0.9550
Overlapping Rates: MAPLEWOOD-RICHMOND HTS SCHOOL Operating Rate $ 3.1488 $ 3.2470 $ 4.1590 $ 4.2410 $ 4.3503 $ 4.4204 $ 4.4204 $ 4.2369 $ 4.6473 $ 4.6473 Debt Service Rate 0.9490 1.0200 1.0757 1.0200 1.0200 1.2000 1.2000 1.3500 1.3500 1.3500 Capital Projects 0.0618 0.0636 ------STATE OF MISSOURI Operating Rate 0.0300 0.0300 0.0300 0.0300 0.0300 0.0300 0.0300 0.0300 0.0300 0.0300 ST. LOUIS COUNTY Operating Rate 0.1900 0.1900 0.2000 0.2000 0.2000 0.2000 0.2090 0.2060 0.1950 0.1950 Debt Service Rate 0.0630 0.0280 0.0280 0.0280 0.0280 0.0280 0.0190 0.0190 0.0190 0.0190 Park Maintenance 0.0500 0.0500 0.0500 0.0500 0.0500 0.0500 0.0500 0.0490 0.0460 0.0460 Health/Hospital 0.1500 0.1500 0.1400 0.1400 0.1400 0.1400 0.1400 0.1380 0.1310 0.1310 Road and Bridge 0.1050 0.1050 0.1050 0.1050 0.1050 0.1050 0.1050 0.1030 0.0980 0.0980 SPECIAL SCHOOL DISTRICT Operating Rate 0.9184 0.9384 0.9950 1.0125 1.0123 1.2400 1.2609 1.2348 1.1912 1.1912 ST. LOUIS COMM. COLLEGE Operating Rate 0.2013 0.2136 0.2179 0.2200 0.2200 0.2200 0.2200 0.2176 0.2112 0.2112 METRO. ZOO, PARK AND MUSEUM Operating Rate 0.2344 0.2493 0.2546 0.2671 0.2684 0.2797 0.2797 0.2777 0.2694 0.2694 SHELTERED WORKSHOP Operating Rate 0.0825 0.0780 0.0827 0.0840 0.0840 0.0900 0.0900 0.0900 0.0840 0.0840 MAPLEWOOD LIBRARY Operating Rate 0.4227 0.3970 0.0417 0.4280 0.4400 0.4770 0.4770 0.4650 0.3700 0.3700 METRO, SEWER DISTRICT Operating Rate - - - 0.0818 0.0635 0.0874 0.0879 0.0876 0.1159 0.1159 Deer Creek Debt Service - - 0.0828 0.0840 0.0840 0.0930 0.0930 0.0830 - - Black Creek Debt Service - - 0.0881 ------Antipollution Debt Service ------
Total Overlapping Rate$ 6.6069 $ 6.7599 $ 7.5505 $ 7.9914 $ 8.0955 $ 8.6605 $ 8.6819 $ 8.5876 $ 8.7580 $ 8.7580
Source: St. Louis County Assessor's Office and City of Maplewood Ordinances
- 87 - CITY OF MAPLEWOOD, MISSOURI
PRINCIPAL PROPERTY TAX PAYERS CURRENT YEAR AND NINE YEARS AGO
2018 2009
Percentage of Percentage of Taxable Assessed Total City Taxable Total City Tax Payer Value Rank Assessed Value Assessed Value Rank Assessed Value
Sunquad Limited Partnership$ 10,698,030 1 6.20% * * * Wal-Mart 4,642,040 2 2.69% * * * Maplewood Outparcel Development 1,998,910 3 1.16% * * * Centro Bradley 1,552,000 4 0.90% * * * Sam's Club 3,020,610 5 1.75% * * * Maplewood South Development 3,529,370 6 2.05% * * * Autohaus 1,761,380 7 1.02% * * * THF Maplewood Shops 1,279,000 8 0.74% * * * Ramco Gershenson Properties 7,061,540 9 4.09% * * * Big Bend 2000 Industrial LLC 572,670 10 0.33% * * * Total Assessed Value - Principal Tax Payers$ 36,115,550 13.47% * *
$ 172,475,869 100.00% * *
Source: St. Louis County Assessor's Office
* Information is not readily available.
- 88 - CITY OF MAPLEWOOD, MISSOURI
PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS
Collected Within the Fiscal Year of the Levy Total Collections to Date Taxes Levied Fiscal Year for the Fiscal Percentage of Delinquent Tax Percentage of Ended June 30, Year Amount Levy Collections Amount Levy
2009$ 1,588,340 $ 1,493,160 94.01 $ 95,175 $ 1,588,335 100.00 2010 1,508,449 1,437,139 95.27 71,306 1,508,445 100.00 2011 1,475,073 1,391,645 94.34 83,241 1,474,886 99.99 2012 1,445,987 1,368,499 94.64 77,091 1,445,590 99.97 2013 1,398,799 1,330,064 95.09 68,008 1,398,072 99.95 2014 1,662,378 1,603,475 96.46 45,151 1,648,626 99.17 2015 1,444,723 1,393,045 96.42 45,028 1,438,073 99.54 2016 1,896,022 1,789,971 94.41 95,550 1,885,521 99.45 2017 1,907,817 1,857,007 97.34 29,945 1,886,952 98.91 2018 1,975,573 1,928,569 97.62 - 1,928,569 97.62
Source: St. Louis County Collector's Office
- 89 - CITY OF MAPLEWOOD, MISSOURI
RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS
Governmental Activities b
Lease Total Percentage of Fiscal Year Ended General Obligation Participation Capital Lease Governmental Personal June 30, Bonds Revenue Bonds Certificates Obligation Bank Note Activities Income a Per Capitaa
2009$ 4,085,000 $ 14,289,640 $ - $ 1,499,680 $ 42,053 $ 19,916,373 11.31% 1,043 2010 3,810,000 13,478,498 - 1,357,097 - 18,645,595 10.59% 977 2011 3,525,000 12,859,344 - 1,209,026 - 17,593,370 9.99% 922 2012 3,230,000 11,866,756 - 1,055,252 151,286 16,303,294 9.26% 854 2013 2,925,000 10,744,527 - 895,559 117,642 14,682,728 8.34% 769 2014 2,550,000 19,855,000 - 729,718 82,787 23,217,505 13.18% 1,216 2015 8,487,687 19,080,775 - 557,492 45,379 28,171,333 15.99% 1,476 2016 7,700,000 18,047,000 - 378,635 9,270 26,134,905 14.84% 1,369 2017 7,319,478 16,950,425 - 780,979 - 25,050,882 14.22% 1,312 2018 6,677,873 15,595,750 - 529,034 - 22,802,657 12.95% 1,195
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. aPercentage of personal income for Fiscal Years 2010-2018 is based on the US Census Bureau's 2010 census. b Debt amounts are net of related premiums and discounts.
- 90 - CITY OF MAPLEWOOD, MISSOURI
RATIOS OF GENERAL BONDED DEBT OUTSTANDING AND LEGAL DEBT MARGIN LAST TEN FISCAL YEARS
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
General bonded debt outstanding General obligation bonds$ 4,085,000 $ 3,810,000 $ 3,525,000 $ 3,230,000 $ 2,925,000 $ 2,550,000 $ 8,487,687 $ 7,700,000 $ 7,319,478 $ 6,677,873
Percentage of estimated actual property valuea 0.56% 0.55% 0.51% 0.49% 0.45% 0.40% 1.30% 1.11% 1.06% 0.94%
Per Capitab 442.67 473.53 438.11 401.44 363.53 316.93 1,054.90 957.00 909.70 829.96
Less: Amounts set aside to repay general debtc ------222,822 394,776
Total net debt applicable to 4,085,000 3,810,000 3,525,000 3,230,000 2,925,000 2,550,000 8,487,687 7,700,000 7,096,656 6,283,097
Legal debt limit 17,753,973 17,050,108 16,782,245 15,909,017 15,717,303 15,503,155 16,054,824 17,098,908 17,081,861 17,247,587
e Legal debt margin $ 13,668,973 $ 13,240,108 $ 13,257,245 $ 12,679,017 $ 12,792,303 $ 12,953,155 $ 7,567,137 $ 9,398,908 $ 9,985,205 $ 10,964,490
Legal debt margin as a percentage of the debt limit 76.99% 77.65% 79.00% 79.70% 81.39% 83.55% 47.13% 54.97% 58.46% 63.57%
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. aProperty value data can be found on page 86: Assessed Value and Actual Value of Taxable Property. bPopulation data can be found on page 94: Demographic and Economic Statistics. c This represents the fund balance in the Debt Service Fund. dUnder the statutes of the State of Missouri, the limit of bonded indebtedness is 10% of the most recent assessed valuation. eThe legal debt margin is the City's available borrowing authority under the statues of the State of Missouri and is calculated by subtracting the net debt applicable to the legal debt limit from the legal debt limit.
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DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT AS OF JUNE 30, 2018
Estimated Estimated Share of Debt Percentage Overlapping Governmental Unit Outstanding Applicablea Debt
Overlapping debt: Maplewood-Richmond Heights School District$ 33,730,765 58.02% $ 19,570,590 St. Louis County 96,850,000 0.71% 687,635
Subtotal, Overlapping Debt 20,258,225
City of Maplewood, direct debt 22,802,657
Total Direct and Overlapping Debt$ 43,060,882
Source: Maplewood-Richmond Heights School District and St. Louis County Assessor's Office
a Estimated based on 2016 real and personal property.
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PLEDGED-REVENUE COVERAGE LAST TEN FISCAL YEARS
Tax Increment Revenue Bonds and Notes
Revenue Sources Debt Service
Fiscal year Property tax Sales ta x Interest Total Principal Interest Coverage
2009$ 1,210,897 $ 574,060 $ 11,427 $ 1,796,384 $ 1,469,165 $ 925,075 0.75 2010 1,048,735 545,243 877 1,594,855 811,142 876,443 0.95 2011 1,265,261 691,097 - 1,956,358 1,138,154 747,395 1.04 2012 1,224,362 683,600 - 1,907,962 992,588 741,060 1.10 2013 1,213,960 639,511 - 1,853,471 1,122,229 674,447 1.03 2014 1,394,382 700,829 - 2,095,211 1,244,526 1,167,398 0.87 2015 651,872 1,148,142 - 1,800,014 666,000 1,071,023 1.04 2016 1,486,708 1,817,052 - 3,303,760 1,107,000 1,034,586 1.54 2017 765,467 1,280,154 1,752 2,047,372 1,032,000 979,946 1.02 2018 1,047,900 1,221,759 18,008 2,287,667 1,359,000 931,006 1.00
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
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DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS
Personal Income Per Capita School Unemployment Year Population (thousand of dollars) a Personal Incomea Enrollment Rate
2009 9,228 - - 1,024 5.5% 2010 8,046 - - 1,049 9.7% 2011 8,046 - - 1,033 9.3% 2012 8,046 200,554,596 24,926 1,203 9.0% 2013 8,046 200,554,596 24,926 1,035 7.3% 2014 8,046 200,554,596 24,926 1,035 7.3% 2015 8,046 200,554,596 24,926 1,035 7.3% 2016 8,046 200,554,596 24,926 1,355 7.3% 2017 8,046 200,554,596 24,926 1,361 4.7% 2018 8,046 200,554,596 24,926 1,515 3.4%
Source: U.S. Census Bureau, Maplewood-Richmond Heights School District, and Missouri Department of Economic Development.
a City specific data for off census years is not readily available.
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PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO
2018 2009 Percentage of Percentage of Total City Total City Employer Employees Rank Employment Employees Rank Employment
Sunnen Products Company 421 1 532.91% * * * MRH School District 265 2 335.44% * * * Walmart 240 3 303.80% * * * Cardinal V. Mueller 104 4 131.65% * * * UHY LLC 101 5 127.85% * * * Essex Manufacturing 85 6 107.59% * * * Lowes 83 7 105.06% * * * City of Maplewood 79 8 100.00% * * * Sam's Club 78 9 98.73% * * * Twin Peaks 67 10 84.81% * * *
Total 1,523 *
*Information not available Source: Employers
Note: Percentage of Total City Employment is based on the total number of full-time equivalent employees.
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FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS
Function/Program 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 General government: City Manager 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Administration 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 4.0 4.0 Community development 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Municipal court 1.0 1.0 1.0 1.0 1.0 1.0 2.0 2.0 1.0 1.0 Police: Commissioned Officers 30.0 30.0 31.0 31.0 31.0 31.0 31.0 31.0 30.0 30.0 Civilians 3.0 3.0 2.0 2.0 2.0 2.0 3.0 3.0 3.0 3.0 Fire Department 20.0 14.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0 Public Works 15.0 16.0 16.0 16.0 15.0 15.0 18.0 18.0 15.0 16.0 Parks & Recreation ------Total 74.0 69.0 75.0 75.0 74.0 74.0 79.0 79.0 75.0 76.0
Source: The City of Maplewood Annual Budgets
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OPERATING INDICATORS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS
Function/Program 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Community Development: Permits Issued: Construction 270 292 302 324 391 383 819 402 420 445 Occupancy 1,194 1,616 1,505 1,933 1,300 1,356 1,024 1,071 984 955 Inspections Performed: Construction 848 516 495 318 629 651 719 785 1033 1055 Code Violations 896 784 924 729 771 1,668 4,151 104 3896 3866 Board of Adjustment Cases 7 7 7 7 3 2 5 9 712 Fire Department: Personnel 20 20 20 20 20 20 21 20 20 20 Number of fire calls 822 825 1,687 695 539 607 632 637 699 714 Number of ambulance calls 962 1,027 1,011 901 1,022 771 1,017 1,108 1123 952 Number of fire safety inspections 930 1,092 1,199 1,199 1,408 1,054 1,068 1,036 1180 1135 Police: Personnel 30 32 33 33 33 33 34 31 34 34 Physical arrests - adult 986 1,622 1,880 2,210 2,084 1,986 1,714 1,626 1451 1541 Physical arrests - juvenile 115 80 68 115 66 34 39 58 45 Number of Traffic and Parking Tickets 6,536 10,410 11,719 9,894 7,938 9,909 6,991 5,508 4134 4881 Number of Traffic Accidents 645 594 527 554 461 254 259 682 256 282 Streets: Maintenance - Asphalt (Tons) 117 102 90 207 51 78 60 13 24 66 Maintenance - Concrete (Cu Yards) 227 78 32 82 168 104 166 29 20 53 Recreation: Number of Adult Programs Offered 49 114 33 161 298 69 229 45 103 40 Number of Children's Programs Offered 19 120 31 69 134 70 127 194 80 87 Number of Family Programs Offered 36 30 20 24 15 19 38 25 39 34
Source: Various city departments * Data not available.
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CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS
Function/Program 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Community Development: Vehicles 1 1 1 1 1 1 1 1 1 1 Police: Stations 1 1 1 1 1 1 1 1 1 1 Vehicles 11 13 15 16 16 16 14 15 15 15 Public Works: Vehicles 11 11 12 14 14 14 15 15 17 17 Parks and Recreation: Acres of Parks 25 25 25 25 25 25 25 25 27 27 Community Centers 2 2 ------Playgrounds 9 9 8 8 8 8 8 8 8 8 Tennis Courts 2 2 2 2 2 2 2 2 2 2 Ball Diamonds 2 2 2 3 3 3 3 3 3 3 Soccer Fields 1 1 2 2 2 2 2 2 3 3 Streets: Miles of Streets 28 28 28 28 28 28 28 28 28 28 Number of Streetlights 804 804 804 804 804 804 804 804 804 804 Miles of Sidewalks 50 50 50 50 50 50 50 50 50 50
Source: Various City departments * Data not available.
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